Tariff Shock Rocks Copper and Pharma, Markets Brace for CPI and Volatility đ
New tariffs hitting copper (50%) and pharmaceuticals (200%) from August 1st are shaking up global markets. Copper futures on Comex jumped 17% in a single day, with traders rushing to move metal to the U.S. before the deadline, driving a record 24% premium over London prices. Pharma gets a 6-12 month grace period to relocate production, but stocks still dipped, dragging the S&P 500 down. Attention now shifts to tonightâs CPI data, which could sway Fed rate cut betsâmarkets expect only two cuts in 2025, with September odds fading. The dollarâs weakening amid fiscal worries, while Bitcoin holds steady at $108k, seen as a hedge against inflation and policy chaos. A trade war revival and tighter Fed policy signal more market turbulence ahead.
This tariff move is a gut punch to global trade, and the copper surge shows how fast markets can spiral when supply chains get squeezed. Pharmaâs grace period softens the blow, but relocating production isnât a quick fixâexpect price hikes. The CPI print could make or break rate cut hopes, and with the dollar wobbling, Bitcoinâs resilience makes sense as a safe bet in this mess. Volatilityâs here to stay, so keep your eyes peeled and your portfolio nimble.
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