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- Another tariff threat, another strong day for US actions.that came out of a defeat on a profit on Monday, with the S&P 500 near its historical maximum.
President Donald Trump is taking recent maximums of the stock market, since the investors of a sign approve their threats to slap the tariffs to the commercial partners, and until now, the markets are demonstrating that it is correct.
The actions began on Monday with force after a new round of tariff threats during the weekend. The S&P 500 won 0.17%, closing within 0.2% several points of its historical maximum, established on Thursday. The Dow increased 0.2% and Nasdaq with technological weight gained 0.27%.
Trump threatened the European Union and Mexico on Saturday with a 30%tariff. The highest levies would kick on August 1, the same day that reciprocal tariffs with most of the United States business partners will increase. Monday, Trump threatened To slapped Russia’s business partners with 100% tariffs if President Vladimir Putin does not end the war in Ukraine within 50 days.
But the markets have learned to ignore such threats, wrote Jim Reid of Deutsche Bank in a recent note, calling them “mainly a negotiation tactic.”
“If ‘Tariff’ is not the word of the year for shares of shares so far, so it may be ‘uncertainty’,” LPL Financial wrote in a research note on Monday. “Tariffs influence the key drivers of stock market performance: economic and corporate growth of profits, inflation and interest rates. If the actions continue to increase in the second half of the year, the commercial policy will need to cooperate.”
While the markets have been optimistic so far, data launches this week could overturn that. On Tuesday and Thursday, the Labor Department will launch inflation data for June. Analysts hope it shows that consumer inflation accelerates last month from 2.4% to 2.6%.
The profit season also begins this week, and the main US banks report their financial results for the previous quarter. This occurs after many large companies took earnings on the pretext of tariffs, but the results will offer a clue to the most popular question in the economy: if companies or consumers are paying the $ 100 billion in rates collected so far by the treasure of the United States.
“Tariffs are not disappearing magically if they do not appear in consumer prices, but somewhere in the supply chain that someone is being cut,” said Peter Bockvar, director of investments at Bleakley Financial Group, in a note.
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