From Inflation Relief to Market Rebounds

This week was marked by intense economic activity, high levels of market volatility (however the week ended with positive returns, S&P +5.73% and Nasdaq +7.30%) and growing political uncertainty, all against the backdrop of an escalating trade war. On the economic front, inflation data offered some respite, although it was quickly overshadowed by geopolitical tensions. Consumer prices fell by 0.1% in March, while core inflation barely rose by 0.1%.

Meanwhile, producer prices fell by 0.4%, reinforcing the idea of inflationary moderation. However, these figures were of little relevance to investors, who focused their attention on the future impact of tariffs and possible inflationary pressures stemming from the trade conflict with China. Inflation expectations for next year rose to 6.7%, the highest level since 1981, and consumer sentiment fell to 50.8, its lowest point since 2022. New York Fed President John Williams warned

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