Update : It seems the open of the cash market prompted humans to actually listen to what Kudlow said...

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The US equity market is surging pre-market as it ignores all the warnings that White House chief economic advisor, Larry Kudlow, just issued about the China trade war and focuses instead on his comment that there is "no recession in sight."

On China and the Trade War:

*KUDLOW: WE'RE IN A 'SIGNIFICANT TRADE DISPUTE' WITH CHINA

*KUDLOW: WTO IS BROKEN, AND BIGGEST CULPRIT IS CHINA

*KUDLOW: 'DON'T BLAME TRUMP -- BLAME CHINA'

*KUDLOW: I BELIEVE THAT CHINA WANTS TO MAKE A DEAL ON TRADE

*KUDLOW: XI DOESN'T WANT TO MAKE A DEAL, IS HOLDING GAME UP

*KUDLOW: CHINA TRADE TALKS ARE STALLED AT THE MOMENT

But - here's what the market heard:

*KUDLOW: 'WE'RE READING THE SPREAD WRONG' (dismissing the yield curve)

*KUDLOW: THERE IS NO RECESSION IN SIGHT RIGHT NOW

And after all that - Dow futs are surging...

Specifically related to the recession, Kudlow appears to be toeing the same line as The Fed - don't sweat the yield curve - somehow proclaiming that you should ignore the 2s10s curve and focus on the 3mo-10Y spread...

Either way, they are tumbling!