There have been few winning strategies to seek refuge in as the stock rout sparked by President Donald Trump’s start-stop tariff war drags on for a third week. One, though, is soaring right now: a pair trade that bets on stocks that thrive in an economy sinking into stagflation.

President Donald Trump says he's not concerned with how the stock market performs as he implements his protectionist agenda. That might soon change.

Hedge funds have slashed their bets on equities and cut their borrowings from banks as they struggle to deal with surging market volatility triggered by US President Donald Trump’s global trade war. A sharp stock market sell-off in recent weeks on concerns about Trump’s tariffs has hit the sector particularly hard.

Wall Street, already on edge over the next tariff announcements from President Donald Trump, turned lower early Thursday ahead of the latest data on inflation and layoffs. Futures for the S&P 500 lost 0.

Recession chatter is still making the rounds on Wall Street, but cooler inflation is quelling fears of a dire scenario for the Fed.