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131 days

Consumer prices fall for first time since 2020, CPI shows. Great. But now tariffs threaten to reignite inflation. - MarketWatch

1. Consumer prices declined 0.1% in March, first drop since May 2020. 2. Ongoing tariffs may exacerbate inflation despite recent CPI easing. 3. Federal Reserve awaits tariff outcomes before adjusting interest rates. 4. Market anticipates higher inflation could climb to 4% if tariffs persist. 5. DJIA and S&P 500 likely to decline following tariff announcement and market volatility.

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FAQ

Why Bearish?

The persistence of tariffs creates uncertainty, impacting market sentiment negatively. Historical trade disputes have led to market volatility and downturns in DJIA.

How important is it?

Changes in consumer prices and tariffs directly influence inflation and interest rate policies, affecting DJIA significantly.

Why Short Term?

Immediate market reactions are expected as tariffs affect inflation forecasts and consumer prices.

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