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U.S. Equities: Resilient Amidst Trade Tensions
- Market Strength: Despite escalating trade tensions and new tariffs, U.S. stock markets are showing resilience.
- Nasdaq Composite closed at new record highs on July 14th and 15th, 2025, and the S&P 500 also recently hit an all-time high before a slight dip on July 15th.
- Why No Panic?
- Limited Exposure: Many U.S. industries aren’t directly exposed to the latest tariffs.
- Anticipated Negotiations: Investors expect ongoing trade talks could lead to policy adjustments.
- Past Corrections: Tariff-sensitive sectors have largely already absorbed much of the negative news.
- Key Driver:Improving corporate earnings are fueling the rally.
- Analyst optimism for future profitability is on the rise, with some reports noting a “v-shaped rebound” in earnings revision breadth.
- Strong Sectors: Financials and Industrials are notably showing stronger earnings outlooks.
- Investor Focus: It’s a “stock picker’s market” – focus on identifying companies with strong underlying fundamentals.
