Trade War Resilience: Economic Outlook
- After a turbulent month, investors appear to be making peace with the ongoing trade war, showing renewed confidence in American stocks.
- while stocks remain approximately 10% below their February high—when regulatory and tax cuts were anticipated—investors are not currently factoring in a recession or a major trade catastrophe.
- Market watchers will continue to monitor trade developments and earnings reports to gauge the long-term impact on investor sentiment and stock performance.
Trade War Calms Investor Fears in American Stocks
updated May 29, 2025
After a turbulent month, investors appear to be making peace with the ongoing trade war, showing renewed confidence in American stocks. The S&P 500 index has decreased by only 2.4% as Donald Trump’s proclamation, indicating market resilience.
while stocks remain approximately 10% below their February high—when regulatory and tax cuts were anticipated—investors are not currently factoring in a recession or a major trade catastrophe. Current projections estimate annual earnings growth at 12%, positioning stocks near pre-election levels.
What’s next
Market watchers will continue to monitor trade developments and earnings reports to gauge the long-term impact on investor sentiment and stock performance.