Why does this matter to me?

Equity markets worldwide rejoiced yesterday at the agreement between the US and China to reduce tariffs imposed upon one another. However, the exuberance has probably been overdone. The fact is that tariffs will still be high, if not exorbitant, and will likely weigh down on global economic activity. Furthermore, it has resulted in a diminution of hopes for substantial interest rate relief both internationally and domestically. Once the full effect of higher tariffs manifests in real economic data, one could find a countervailing resumption of weakness in markets.