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U.S. manufacturers were the most optimistic in 2 years — but that was before Trump tariffs - MarketWatch

1. ISM manufacturing index rose to 50.9%, indicating expansion. 2. First positive survey in over two years amid looming trade tariffs. 3. Tariffs could raise raw material costs and provoke retaliation. 4. DJIA fell 1.37% following Trump's tariff announcement on trading partners.

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FAQ

Why Bearish?

The announced tariffs could harm economic growth, leading to lower stock prices. Past tariffs have historically caused significant market corrections.

How important is it?

The shift in manufacturing sentiment coupled with trade policy changes directly affects investor confidence and market stability.

Why Short Term?

Immediate market reactions to tariffs are likely, impacting DJIA within weeks. Past examples show tariffs have quick adverse effects.

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