Escalating tariff was sends the S&P500 steps into the correction zone | MarketTalk: What’s up today? | Swissquote

Yesterday brought yet another escalation in the trade war. This time, Trump was reportedly totally annoyed that the Europeans responded to his 25% steel and aluminium tariffs rather than backing down and slapped 200% tariffs on champagne, wine, and other alcoholic beverages from France and the EU. The stock selloff continued on both sides of the Atlantic Ocean: the S&P500 stepped in the correction territory, while the Stoxx 600 saw support near the 50-DMA.
On the data front, the softer-than—expected US inflation numbers were taken with a pinch of salt. That is because investors are more focused on rising inflation expectations driven by tariffs than on actual inflation data, as expectations tend to be self-fulfilling. Today’s Michigan consumer sentiment and inflation expectations update could trigger a stronger market reaction than the CPI and PPI prints.
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