Bonds & Stocks
US stock futures fluctuated after back-to-back gains on Wall Street as investors scaled back their expectations of quick progress in the US-China trade dispute. S&P 500 contracts were steady after sliding as China maintained a defiant stance over tariffs imposed by the Trump administration.
Economy
Initial jobless claims increased only modestly and continuing claims fell, which typically would suggest downward pressure on the unemployment rate. However, we expect layoffs to rise ahead: Federal funding cuts are forcing layoffs of non-government workers, and Washington, DC, Maryland and Virginia have seen a surge in WARN notices compared to a year ago.
World
China demanded that the US revoke all unilateral tariffs and denied there were talks on reaching a trade deal, maintaining a defiant stance despite President Donald Trump’s recent easing of criticism of the country.