Morning Juice – US Session Prep (23rd May)

Sentiment
US stock futures dropped this morning as Trump took to Truth social, threatening 25% tariffs on Apple, and an increased tariff on the EU of as much as 50%.

S&P 500 contracts were little changed in early trading this morning after US stocks suffered three days of losses, that was until a Truth Social post from Trump in which he threatened 25% tariffs on Apple IPhones not made in the US, and in a seperate post, stated that the EU was being difficult to work with, and is recommending a 50% tariff on the region.
The US benchmark remains on course for its worst week since the selloff following Trump’s tariff announcements at the beginning of April.
Longer-tenure Treasuries notched small gains, with the 30-year yield falling one basis point to 5.03%.

Bond markets this week have reflected investors’ concerns about ballooning US debt and deficits, which was amplified after Moody’s Ratings downgraded the nation’s top credit rating.
Rising yields, particularly on longer-dated instruments, intensified investor concerns about the economic outlook amid a backdrop of elevated borrowing costs and ta riff-induced uncertainty.

Following the US House’s approval of Trump’s tax bill on Thursday, analysts are cautioning that an ongoing deterioration in the US government’s fiscal position will continue to weigh on riskier assets.
The legislation, a multi-trillion dollar package that would avert a year-end tax increase at the expense of adding to the US debt burden, is now heading for a Senate vote.

Docket
08:30 ET
Canadian Retail Sales March
MoM – Forecast: 0.7% | Prior: –0.4% | Range 1.4% / –0.5%
Core MoM – Forecast: –0.1% | Prior: 0.5% | Range 0.8% / –1.8%

10:00 ET
US New Home Sales for April
Forecast: 0.695M | Prior: 0.724M | Range 0.749M / 0.65M

Speakers
08:30 ET
Fed’s Goolsbee gives an interview to CNBC.

09:35 ET
Fed’s Musalem and Fed’s Schmid speak in a fireside chat on Fed and Economy. Text is not expected, but Q&A is.

12:00 ET
Fed’s Cook speaks on financial stability at the 7th Annual Women in Macro Conference. Text is expected, but no Q&A.

13:00 ET
Trump Signs Executive Orders

Good luck!