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106 days

Why the stock rally may be in trouble after the White House ‘backtracked’ on tariffs - MarketWatch

1. Market priced in tariff backtracking, limiting further S&P 500 gains. 2. S&P 500 shows modest decline after a long winning streak. 3. Tariff exemptions include tech and auto sectors, impacting import costs. 4. Economic data remains solid, but the risk of growth slowing persists. 5. Investors are advised to favor defensive sectors amidst uncertainty.

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FAQ

Why Bearish?

Backtracking on tariffs doesn’t provide sustainable growth support for S&P 500. Similar situations in 2018 saw market downturns post-tariff announcements.

How important is it?

Ongoing trade negotiations and tariff implications are pivotal for market sentiment and consumer pricing, directly affecting S&P 500 performance.

Why Short Term?

Immediate reactions to trade news can influence prices quickly, as seen during recent trade negotiations.

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