One day after the the S&P500 bull market set a new duration record, at exactly 0.01 Washington Time on Thursday, the U.S. imposed tariffs of 25% on $16 billion worth of imports from China, sending the US dollar sharply higher across the board.
It's relatively quiet week where the highlights will be the latest global PMIs, the Aug 23 US-China tariff deadline, the minutes from the last FOMC and ECB meetings and, of course, Jackson Hole looms at the end of the week.
AMZN is back to its short-crushing ways, reporting EPS which smashed expectations, but missing on revenue and guiding below consensus. The stock initially tumbled as much as 5% before spiking higher thanks to continued AWS growth.
After 6 consecutive declines in the Dow Jones, the longest stretch since March 2017, and erasing all of 2018’s gains, the cash index is finally set for a rebound, trading some 130 points higher as the trade war panic fades, for now.
Where previously the threat of renewed trade war between the US and the world would have been sufficient to pummel global markets, today stocks are approaching life with a "glass half full" approach, and global stocks and US futures are green across the board.
The post-FOMC confusion spilled over into international markets, with both Asian and European shares retreating, alongside US equity futures, as traders are on edge ahead of the US-China trade talks taking place today and tomorrow.