Mag 7 & Tech Weigh Down Markets, Tariff "Curveball" to Inflation Picture

Market Sentiment - The current market sentiment is risk-off, with equities under pressure due to tensions between China and the US, particularly following China's sanctions on a South Korean shipbuilder [1][2] - Despite the overall decline in the S&P 500, approximately 56% of the stocks are in the green, indicating some internal market strength [1][2] Bond Market and Interest Rates - The 10-year Treasury yield has fluctuated around the 4% level, with recent dips below this threshold, reflecting a flight to safety amid the ongoing US government shutdown [3][4] - Technical traders are observing key support levels around 4% for the 10-year rate futures, with potential for yields to move lower if the government shutdown continues [5][6] Economic Indicators and Federal Reserve - The ongoing government shutdown is impacting the availability of economic data, which may affect the labor market and consumption growth in the US [7][8] - The IMF has reported that while trade tensions have limited immediate impacts, they expect global growth to slow moving forward [9] Commodity Markets - Crude oil prices remain below $60 per barrel, with concerns about global growth, particularly in China, affecting demand [10][11] - Silver is experiencing volatility, with a structural shortage due to increased industrial demand, but traders are cautious about potential pullbacks at key price levels [15][18][19]