US, Iran Forces Clash; Trump's 10% Tariffs Deemed Unlawful; Jobs Day | Bloomberg Brief 5/8/2026
Summary
The episode covers rising oil prices after US-Iran clashes near the Strait of Hormuz, a federal court striking down Trump's 10% global tariffs, and a preview of the April jobs report. Jeffrey Gundlach discusses his portfolio shifts into low-coupon Treasuries and commodities. Earnings movers include Cloudflare, Trade Desk, and TSMC sales data.
- Oil wavered near $100/barrel after US and Iranian forces clashed near the Strait of Hormuz.
- A federal trade court ruled Trump's 10% global tariffs unlawful, potentially setting precedent.
- Veronica Clark of Citi predicts a decline in April payrolls and expects the Fed to cut rates in September.
- Jeffrey Gundlach swapped higher-coupon Treasuries for lower-coupon ones, anticipating a recession and debt restructuring.
- Gundlach also recommends a 20% allocation to commodities and real assets as a long-term hedge.
- TSMC April sales grew 17.5% but missed analyst expectations for the quarter, though full-year guidance was raised.
- Cloudflare and Trade Desk shares fell in pre-market after disappointing earnings and forecasts.
- The dollar weakened against sterling, euro, and Swiss franc ahead of the payrolls report.
Trade Ideas
Swap high-coupon for low-coupon Treasuries.
Gundlach replaced higher coupon Treasuries with the lowest coupon Treasuries of the same maturity in some portfolios, positioning for a potential U.S. debt restructuring in response to a recession. This swap allows him to benefit from price appreciation if yields fall while maintaining same duration exposure.
Hold 20% in commodities/real assets.
Gundlach recommends a 20% allocation to commodities and real assets as a long-term hedge, citing that he has liked commodities for a long time and believes they provide a store of value in the current macro environment.
Up Next
This Bloomberg Markets video, published May 08, 2026, features Jeffrey Gundlach discussing TLT, DBC. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jeffrey Gundlach · Tickers: TLT, DBC