Delta-China Retaliates With 84%

Trade War Impact - The trade war has escalated with a +50% increase in tariffs on Chinese imports to the U.S., and China retaliating with a +50% tariff on U.S. goods, raising tariffs on American goods to +84% in China and +104% on Chinese goods in the U.S. [1][2] Market Reactions - Pre-market trading shows significant declines: Dow down -850 points, S&P 500 down -95 points, and Nasdaq down -280 points. Spot oil prices have dropped to four-year lows, with WTI crude at approximately $56 per barrel. Bond yields are rising, with the 10-year at +4.46% and the 2-year at +3.82% [3]. Economic Indicators - Wholesale Inventories for February are expected to show moderated growth of +0.3%, down from +0.8% the previous month, indicating companies may have anticipated current trade turmoil [4]. - The minutes from the latest Federal Open Market Committee (FOMC) meeting will be released, with expectations of concerns regarding the economy affected by heavy tariffs [5]. Federal Reserve Projections - Market analysts have revised projections for Fed funds rate cuts from 1-2 expected in 2025 to 5, indicating anticipation of a major economic downturn due to prolonged tariff impacts [6]. Delta Air Lines Q1 Results - Delta Air Lines reported Q1 earnings of 46 cents per share, exceeding expectations of 40 cents, but revenues of$ 13.0 billion fell short of the $13.8 billion consensus [7]. - Guidance for the next quarter has been lowered, with expected earnings per share between$ 1.70-2.30 and revenues projected to change between -2% to +2% [8].