More market chaos could come in hot this week

For weeks the main focus for investors has been how Trump's wide reaching tariffs will impact economic growth, fearing a recession.

Transcript

00:00For weeks, the main focus for investors has been how Donald Trump's wide-reaching tariffs

00:05will impact global economic growth, with fears mounting that recession could strike.

00:10That narrative just got its latest big development.

00:12Wild swings in the market continued on Wednesday as the global trade war was largely put on hold.

00:18After opening lower, the S&P 500 quickly reversed and ultimately spiked more than 7%

00:24after President Trump paused tariff hikes on non-retaliating countries.

00:28The inflation report at 8.30 a.m. Eastern on April 10th will be the next major input for the stock market.

00:34Here are a couple of likely scenarios.

00:36If inflation comes in cooler than expected, this would be a positive for the prospect of rate cuts,

00:41which would stimulate the economy. This would likely elicit a positive reaction.

00:45If inflation comes in hot, this would hamstring the Fed's ability to cut interest rates,

00:50further adding to economic growth concerns and worries that the central bank's hands are tied.

00:55This would likely be stocks negative.

00:57After the dust settles on the inflation report,

01:00Trump's guidance on tariffs will be key going forward.