Stock Vigilantes Declare: 'Mr. President, Tear Down This Tariff Wall!'

China imposed a 34% tariff on imports of US goods in retaliation for President Donald Trump's trade war today. The S&P 500 continues to fall freely and the Nasdaq entered bear market territory this morning.

On March 10, when the S&P 500 closed at 5614.56, we wrote in our QuickTakes: "The Stock Market Vigilantes have spoken. They don't like tariffs, and they don't like mass firings of federal workers. That's because they don't like stagflation, and they fear that Trump 2.0's focus on these measures could cause a recession with higher inflation."