Squawk on the Street Tariff Showdown: China and EU vs. U.S., Treasury Yields Spike, Market Volatility 4/9/25
Apr 9, 2025
Markets are reeling from escalating tariffs, with China's response hitting 84 percent against U.S. goods. The volatility extends to the bond market, where 10-year Treasury yields have spiked to 4.5 percent. CEOs from Walmart and Delta weigh in on the chaos, while Neel Kashkari tackles inflation concerns. The trade dynamics between the U.S., China, and the EU continue to impact major retailers and manufacturers. Amid all this, there's a mixed outlook for automotive stocks and a call for composure in the face of uncertainty.
AI Snips
Chapters
Transcript
Episode notes
Market Uncertainty
- The trade war's uncertainty makes market predictions difficult, especially for companies like Apple.
- Valuing Apple is challenging due to fluctuating earnings estimates and price-to-earnings multiples.
Bond Market Volatility
- The bond market's volatility raises concerns about liquidity and potential recession.
- Hedge funds unwinding basis trades and foreign governments selling US treasuries contribute to instability.
Fed's Focus on Inflation
- Neel Kashkari emphasizes the Fed's focus on anchoring long-term inflation expectations.
- Tariffs create uncertainty, making it harder for the Fed to adjust interest rates.