Happy Tuesday! JPMorgan Chase CEO Jamie Dimon, once a supporter of President Trump's tariffs, is now warning that the levies could trigger a downturn. Learn why Dimon changed his tune — and what it means for investors. Also, learn how to interpret the Federal Reserve's favorite indicator.

Plus, to boost your ETF holdings, check out today’s special offer.

—Josh Enomoto

MARKET RECAP

Yesterday: Stocks slipped Monday as conflicting reports over tariff delays rattled sentiment, with investors weighing the near-term economic impact of sweeping new duties. Bond yields reversed higher and international markets slumped, while the Nasdaq eked out a modest gain. Markets now turn to trade negotiations and upcoming economic data for signs of stabilization.

On Our Radar: Analysts will wait for Wednesday’s wholesale inventories to extract further clues about economic viability. On Tuesday, WD-40 will disclose its earnings results before the opening bell.

TOP STORY

Jamie Dimon, Once A Tariff Supporter, Warns Trump's New Policy Could Stall US Growth, Stoke Inflation: 'The Quicker The Issue Is Resolved, The Better'

JPMorgan Chase head executive Jamie Dimon, who previously supported President Trump's protectionist policies, is having a change of heart.

Discover why Dimon believes a downturn could materialize — and how investors can prep for the worst.

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FIVE ZINGERS

Count Down: Goldman Sachs is sounding off, warning that the U.S. economy is on a "countdown to recession." Learn what the experts are so worried about.

Death Cross: Shares of Apple Inc. just flashed the Death Cross, where the 50-day moving average slips below the 200 DMA. Read what the implications are.

Summer Slowdown: Needham analyst Mike Cikos noted that infrastructure software companies are better insulated from tariffs than other sectors. Still, here are the names facing heightened risk.

Machine Intel: Shopify CEO Tobi Lutke raised eyebrows, requesting that staff demonstrate a lack of AI effectiveness before requesting additional staff. This shows the confidence in AI among some organizations.

Push Back: Nintendo announced that preorders for its highly anticipated Switch 2 will be delayed due to tariff concerns. Here's what the leadership team had to say on the matter.

SPECIAL OFFER

The Insider Report: Is There Enough Blood In The Streets Yet?

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

It's all about those credit spreads. Every now and then, the Fed will drop a truth bomb and talk about how they monitor credit conditions carefully. Even though maintaining market liquidity isn't part of their dual mandate, it's something they take very seriously.

The easiest way to measure credit spreads is to look at the ratio between investment-grade corporate debt (LQD) and 3-7 Year Treasuries. Remember, when we look at spreads between bonds, we want the duration (time until it matures) to be similar. LQD's duration is in the same ballpark as IEI.

When LQD outperforms IEI and the ratio rises, it means that liquidity conditions are improving. While that's been the case overall since October 2022, we've actually seen a steady decline in the ratio, or a widening in spreads, since summer 2024. It's a big reason why there's been volatility.

To keep reading and to find out how investors can get in front of the noise, sign up for the Insider Report here.

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