Daily Newsletter 8/13/25

There are several key factors contributing to the prevailing optimism in the markets. First, U.S. inflation came in lower than anticipated, indicating that the impact of tariffs on consumer prices has yet to materialize. As a result, the debate over whether tariffs will ultimately lead to higher inflation remains unresolved. Second, the 90-day extension of the trade truce between the United States and China has provided additional reassurance to investors, easing immediate concerns over escalating trade tensions.