The stock markets are rewarding the threats of the new tariffs for Trump with the S&P hovering near its high record
- Another definition threat, another strong day for us, stocksThe swing from a loss to Monday’s gain, with the S&P 500 near its highest level ever.
President Donald Trump takes the highest levels in the stock market, as investors agree to threatens to slap the customs tariff for commercial partners-and so far, the markets prove that it is right.
On Monday, the stocks started strong after a new round of tariff threats during the weekend. S&P has gained 0.17 %, with 0.2 % closed several points from its highest level ever, on Thursday. the Dao It increased by 0.2 % and heavy technology Nasdak Earn 0.27 %.
Trump threatened on Saturday European Union and Mexico With a 30 % tariff. The higher graphics will be kicked on August 1, on the same day that most trading partners in the United States are scheduled to rise. On Monday, Trump threatening To slap the commercial partners in Russia with a 100 % tariff if President Vladimir Putin does not end the war in Ukraine within 50 days.
But the markets learned that Ignore such threatsJim Reed from Deutsche Bank wrote in a recent memo, describing them as “mostly negotiating tactics.”
“If the word” tariff “is not the word of the year for stock investors so far, it may be” uncertainty “,” LPL Financial Books in the Monday’s research note. “Definitions affect the main engines for the performance of the stock market: the growth of economics and companies’ profits, their enlargement, and interest rates. If shares continue to rise in the second half of the year, commercial policy will need cooperation.”
Although the markets have so far been multiple, data versions this week can increase this. On Tuesday and Thursday, the Ministry of Labor is scheduled to issue inflation data for June. Analysts expect the acceleration of consumer hypertrophy last month from 2.4 % to 2.6 %.
The profit season begins this week, as the main American banks reported their financial results for the previous quarter. This comes after many large companies have confirmed profits about the pretext of definitions, but the results will be done Provide a hint The answer to the most hot question in the economy: whether companies or consumers pay $ 100 billion in definitions It was collected so far by the US Treasury.
“The tariffs do not disappear in a magically if they do not appear in the prices of consumers, but somewhere along the supply chain in which it is cut,” said Peter Bokarfar, chief investment official in the Blackley Financial Group.
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