Jeremy Siegel: Investors will buy this dip as earnings remain strong

Market Sentiment & Economic Indicators - The market showed some discouragement due to Bloomberg's report suggesting Waller, perceived as less dovish, as a top candidate for Fed chair [2] - Continuing claims experienced a jump, indicating a situation where companies are not firing but also not actively hiring [2] - Tepid treasury auctions, particularly the 30-year and 10-year, contributed to market pullback after a significant run [2] - Earnings are generally strong, and guidance is positive, even with upcoming tariffs [4] Tariff Impact & Trade Policy - The Trump administration is showing flexibility regarding tariffs, offering better deals to those who come to the table [5] - UBS suggests the US effective tariff rate will settle around 15%, enough to weigh on growth and lift inflation but not derail the US economy or equity rally [6] - New tariffs were announced, but exceptions were made for chip manufacturers who build in the US, removing tariffs for them [4] Monetary Policy & Interest Rates - Waller and Bowman have urged the Fed to see through the tariffs as a one-time tax increase, not as demand-driven inflation [7] - If the view of seeing through tariffs becomes more pervasive at the Fed, interest rates could decrease due to the inversion of the curve [7] - The spread between Fed funds at 44 basis points (0.44%) and the 10-year at 42 basis points (0.42%) suggests room for rates to move down [8]