From Financial Modeling Prep: 2025-02-19 05:53:32

In the latest earnings season, 76% of S&P 500 companies beat profit estimates, with tech and telecom leading the way while autos and retail lag behind. However, stocks are underperforming even with positive earnings, as Trump’s tariffs and inflation fears cloud the market outlook.

Despite a strong quarter, companies are not raising future guidance, leading to cautious investor sentiment. Trump’s trade and tariff policies, including 25% tariffs on autos and semiconductors, create uncertainty and inflation risks that could impact consumer spending. Economic concerns like inflation and weakening consumer sentiment further weigh on investor confidence.

Looking ahead, key earnings reports to watch include Walmart and Nvidia, which will provide insights into consumer spending trends and the semiconductor sector outlook. Expect continued stock volatility as the market reacts to earnings, tariffs, and inflation risks. Companies with strong earnings and upgraded guidance are likely to outperform, so monitor consumer trends, tech sector strength, and economic policy shifts for future direction.



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