06:26 AM EDT, 03/24/2025 (MT Newswires) -- US equity investors will watch for the back-and-forth from the Trump administration on international trade tariffs while staying focused on the Federal Reserve's preferred inflation data this week.

* In response to the upcoming tariff announcements from the US on April 2, Premier Li Qiang said China is ready for potential unexpected shocks.

* This development comes after President Donald Trump said Friday there is "flexibility" in his plans for reciprocal tariffs. Those comments helped turn around the US equity market on Friday, reportedly enabling the S&P 500 and the Nasdaq Composite to eke out a gain for the week, as it played into the bark-worse-than-bite narrative.

* US Trade Representative Jamieson Greer will likely meet his China counterpart this week. Trump has imposed 10% additional tariffs on Chinese imports. He has also unveiled varying levies and concessions on Mexico and Canada and a global flat 25% import duty on aluminum and steel, contributing to the Fed extending its policy hold in March as the anticipated impact on the fight against inflation remains uncertain.

* "There could always be some unexpected development, or President Trump could mention something this week that suggests a harder line," Khoon Goh, head of Asia research at ANZ Group Holdings, said in a note. "So it's hard for markets to adequately price in the risk at this stage."

* Investors will be watching closely the personal income, spending, and price data, along with the final University of Michigan report for March on consumer confidence and inflation expectations on Friday. The S&P Global flash estimates for manufacturing and services, durable goods orders, weekly jobless claims, and the final Q4 GDP growth rate are due earlier in the week.

* Fed Governors Michael Barr and Adriana Kugler, Atlanta Fed President Raphael Bostic, Minneapolis Fed Chief Neel Kashkari, and Richmond Fed President Thomas Barkin are scheduled to speak this week. Barr and Bostic will likely get an opportunity to share their views after the Fed's preferred PCE inflation data is released Friday.