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U.S.-China Detente Off as Threats Rekindle April Tariff Fears

1. Trump threatens massive tariffs on China in response to export controls. 2. Stocks declined as fears of renewed U.S.-China trade tensions resurface. 3. Past tensions led to market volatility; tariffs impact critical sectors. 4. China's rare earth supply chain controls can affect U.S. industries significantly.

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FAQ

Why Bearish?

Escalating trade tensions historically lead to market downturns, impacting SPY. Similar incidents in 2018 resulted in significant declines.

How important is it?

Trade relations significantly influence market sentiment and SPY's performance due to its broad market coverage.

Why Short Term?

Immediate investor reactions to trade news usually impact prices quickly. Recent market history shows short-term volatility.

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