Last week, the S&P was down 31bp with the Nasdaq trading inline and the small cap Russell falling 63bp. Trump added volatility via tariff updates and the Momentum Unwind created some below the index-level turmoil although we are seeing a solid bounce this morning in Goldman's closely watched High Beta Momo pair trade.
This week, markets receive CPI and Retail Sales on the macro side and Q2 earnings season kicks off with the Banks (full preview to follow). Further, will the market continue to look through elevated tariff levels believing Trump will pivot to lower levels, or any near-term downside will be bought going into the Aug 1 deadline?
