"In general, we've seen Trump walk back his most attention-grabbing threats, which tend to be those that would drastically increase the U.S. effective tariff rate or threaten the trade truce with China."

Although President Trump has backed off threats of additional tariffs and a possible Greenland invasion, European leaders' faith in the U.S. has taken a hit over the past week

Analysts expect U.S. high-grade corporate bond spreads to widen.