The Breakdown Continues

We're two days away from "Liberation Day." The market is reacting as expected.

Market outlook:

• Treasury yields retreat across the curve with the 10-year down to 4.19% and the 2-year below 3.85%; bond buying accelerates ahead of Wednesday's tariff decision

• Oil edges higher despite risk-off sentiment on Trump's weekend threats against Russian and Iranian oil

• Gold notches another record at $3,093, marking the fourth straight weekly gain; prices up 17% in 2025

• The volatility index (VIX) held above 22 after Friday’s spike, with markets bracing for a triple threat: tariffs, a jobs report, and Powell’s speech this week.

• International equities outpace US markets by a wide margin; Eurozone is up 14% while S&P 500 is down 5%, marking an end to the longest US outperformance streak in market history.

• China injects $69B into the four largest state banks through special sovereign bonds; capital aims to support economic growth for the technology and consumer sectors.

Dear Reader:

Good morning. You can’t help but feel more pain coming to the S&P 500. There’s ample leverage and risk sti…