Powell Warns Tariffs Will Spike Inflation While Iran Launches New Attack
In a Nutshell
Powell's Harvard speech warns tariffs could boost inflation by 0.5-1%, but Middle East tensions from Iran's new attacks on US/Israel targets—sparked after Trump's deescalation tweet—pose a bigger short-term risk via surging oil prices. Markets are green on dip-buying hopes (e.g., MSFT -34%, META -31%), with key data this week including JOLTS, ADP payrolls, retail sales, and Friday's NFP before Good Friday close. Focus on long-term plans for buying dips, avoid aggressive trades amid uncertainty, and join live sessions for real-time strategy.
These notes were generated by AI and may contain inaccuracies.
Ricky with Tech Solutions provides a market update on Monday, March 30th, 10:37 a.m. in Texas (visiting from Arizona). NASDAQ is slightly in the green after overnight futures opened in the red but recovered nearly 1% due to Trump's pre-market tweet.
The United States is in serious discussion with a new and more reasonable regime to end our military operations in Iran.
This tweet was sent Sunday night or Monday morning before markets opened. Shortly after, Iran announced it will strike residences of US and Israel officials in the Middle East, now considered legitimate targets. Markets react positively to deescalation hopes but pattern of Monday pre-market tweets followed by Iranian escalation raises doubts about manipulation.
Deal or No Deal Assessment
Tensions appear to be rising, not deescalating, yet markets remain green for now.
- Tuesday: JOLTS job openings, consumer confidence report.
- Wednesday: ADP non-farm payrolls, retail sales, ISM manufacturing PMI.
- Thursday: Initial claims, continuing claims.
- Friday: Non-farm payrolls, unemployment rate. US stock market closed for Good Friday.
Jerome Powell spoke at Harvard, stating tariffs could add 0.5% to 1% to inflation. Amid energy crisis, focus remains on tariffs (not oil). Escalating Middle East tensions will drive oil prices higher, likely the biggest short-term contributor to CPI inflation via pump prices.
If deescalation occurs:
- Microsoft down 34%
- Meta down 31%
- Tesla down 25%
- Google down 20%
- Amazon down 20%
- Nvidia down 19%
- Apple down 12%
Focus on long-term investments over daily trading. Questions to ask: Do you have a plan for buying dips (when, how much)? Do you see more downturn before reversal? Markets always recover—key is tolerating the time. Avoid aggressive dip buying as things can worsen before improving.
In LPP live trading sessions, short intraday downturns; go long on clear upticks. Larger timeframe shows markets seeking support amid Middle East uncertainty. More attacks increase fear and drops; deescalation proof or tweet could spark recovery and lower oil.
Tune into daily live trading sessions at market open (second link in description) to watch trading and get real-time Q&A. Suitable for beginners—check LPP team fit.
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