From Yahoo Finance: 2025-05-23 14:36:00

Stocks plummeted on Friday following President Trump’s new tariff threats toward the EU and Apple, reigniting trade anxiety. Wall Street remains optimistic that tariffs will settle at lower levels and that the economy can withstand turbulence. Trump’s use of tariffs as a policy tool injects uncertainty into the market, but many analysts believe the economy can weather the storm.

President Trump’s early morning social media posts about imposing tariffs reminded investors of his willingness to use trade tactics as leverage. The threats introduced fresh uncertainty into a market that had recently shown signs of optimism. Although the threats may indicate Trump is closely watching the market, analysts remain confident in the economy’s resilience.

Despite the recent market jolt, analysts like Eric Teal and John Stoltzfus maintain confidence in the economy and stock market’s ability to navigate through tariff-related turbulence. UBS downgraded U.S. equities from Attractive to Neutral, citing limited upside post-“Liberation Day.” However, they expect reciprocal tariffs to be reduced or removed, with the S&P 500 projected to end the year at 6,000.

UBS anticipates the S&P 500 to rise to 6,400 by next June, reflecting a positive outlook on equities despite recent market volatility. The firm’s Chief Investment Officer, Mark Haefele, believes that growing challenges will lead to a reduction in tariffs, signaling a potential path for market stability amidst trade uncertainties.

Read more: Trump’s Latest Tariff Threats Revive Trade Anxiety