Breakeven inflation rates were moving in a manner on Friday that suggests tariffs should be only a short-term problem. Five, 10-, and 30-year breakeven rates — which reflect future inflation expectations — were falling to 2.

U.S. stocks are falling following discouraging updates on inflation and how much U.S. households may be willing to spend.

But April and May will shed some much-needed light on the market, giving investors clarity about whether stocks will recover quickly or whether there's further to fall.

The S&P 500 was down 3.3% in early trading, worse than the drops for other major stock markets. The Dow Jones Industrial Average was down 1,160 points, or 2.7%, as of 9:32 a.m. Eastern time, and the Nasdaq composite was 4.5% lower.

US stocks plunged after President Trump announced a baseline 10% tariff on all US trading partners, sending shockwaves through markets and the global trade order.

The President has an enormous potential impact on the stock market. A slip of the tongue can generate considerable short-term volatility. More importantly, a president and his policies can lead to “regime uncertainty,” which can significantly influence the stock market over long periods.

Goldman Sachs cut its S&P 500 target and raised its recession forecast. The bank now sees a 35% chance of a recession in the next 12 months.

You might see the price of land and buildings increase, and you might see the price of bonds go up. If interest rates go down because there is an inverse relationship between interest and the price of bonds. But also, you might see the actual inflation hitting some of your liquid assets.