Trade news dominated the markets, but the impact varied, depending on the market.

Bonds rallied on perceptions that trade frictions would slow the economy and force the Fed to lower interest rates (75% bet now) to stave off a recession.  Treasury yields fell to the lowest levels in over a year.

Higher tariffs will likely increase inflation and keep interest rates low.

Trump, by imposing restrictions on Huawei and banning telecommunications equipment built by “foreign adversaries,” is standing up to China to protect the national security and economic interests of the U.S.

This caused much of the weakness in semiconductor stocks, especially those vulnerable to restrictions on Huawei and other Chinese tech companies.


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