10:46 a.m. The Dow Jones Industrial Average is tumbling as the market wrestles with the impact of new tariffs on China and a Federal Reserve that may not be dovish enough.
Friday was supposed to be about July’s jobs report, but instead, it’s an afterthought. With President Donald Trump announcing new tariffs on China yesterday, concerns about whether the Fed is going to cut rates again have taken on more import.
The good news: The Fed will likely be forced to cut interest rates. “If trade uncertainty persists and poses a risk to U.S. economic growth and inflation, the Fed may feel compelled to cut interest rates more aggressively,” writes Keith Lerner, chief market strategist at SunTrust Advisory Services. “We continue to expect choppier markets as we enter the historically weaker seasonal months, and the proposed tariffs linger.”
That’s also the bad news.
Markets Now is a quick take on what’s happening with the Dow Jones Industrial Average and other major market indexes. Don’t forget to check out the rest of Barron’s markets coverage.
Write to Ben Levisohn at Ben.Levisohn@barrons.com