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Stocks and U.S. government bonds sell off in tandem Friday as trade jitters cool rally - MarketWatch

1. Trump's tariff threats caused significant market selloffs, impacting global trade. 2. DAX ETF saw its worst drop since April, amidst rising tariff levels. 3. Investors are fatigued with trade developments, uncertain about future market conditions. 4. U.S. Treasury yields rose, signaling concerns about inflation amid trade tensions. 5. European stocks led losses, indicating vulnerability to U.S. trade policies.

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FAQ

Why Bearish?

Tariff threats create uncertainty, traditionally leading to negative market reactions; historical trade disputes have shown stocks suffer during similar events.

How important is it?

High probability of market volatility due to trade issues affecting DAX and European markets.

Why Short Term?

Immediate market responses anticipated as tariffs are set to start affecting trade in August.

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