A steady week in Wall Street is completed with profits for the sharesas the rally of the most powerful market group offset the conflicting messages around President Donald Trump’s trade war, according to Bloomberg.
The rise in Wall Street’s technological shares has put the S&P 500 in orbit for its greatest rise since January. Today (25.4.25), Dow Jones rose 0.09%, S&P rose 0.74%and Nasdaq closed to +1.26%. Tesla made a 10%jump, while Alphabet also got uphill thanks to the fixed results. The shares lost their upward “forums” for a while, as Trump implied that a new delay in mutual duties is unlikely and that He would not leave the duties in China without “something substantial” in return. Bonds and dollar rose.
“We are in pricing today”said Joachim Klement, a strategic analyst of Panmure Liberum. “There is no fundamental change in the prospects, so markets are clinging to the noise and are constantly whipped by the ever -changing statements of Donald Trump and his cabinet.”
As traders weigh the conflicting messages about whether the US-China commercial dispute is diverged, Bloomberg News reported that Beijing is considering the possibility of suspending the duty of 125% in some US imports.
Trump told Time magazine that he is expecting to complete trade agreements with US partners looking for lower duties in three to four weeks. But the president gave confused messages about the situation of talks with China, even when the Asian nation has denied negotiations.
“The markets have made a striking recovery from the hectic beginning of the month,” said Mark Hackett of Nationwide. “Investors were encouraged by the news about duty negotiations. While the fear of investors around the duties is receding, economists are still seeing opposite winds. “
As profit margins remain close to record levels, America’s companies have some room to absorb the costs from higher duties. However, the history of the S&P 500 companies in the last two decades suggests that their ability to withstand additional contributions is fragile, at least one meter.
Almost all of the increase in the profit margin detached from corporate sales in the index since 2004 comes from the developing technological sector, according to Bloomberg Intelligence. By removing the group, profitability increased slightly.
“The slowdown in the economic activity caused by tariffs, as well as the highest cost, will squeeze the increase in corporate profits,” said UBS Global Wealth Management. “But the economy will recover next year, as businesses and consumers will adapt to duties, with the help of federal bank interest rates and confidence in tax policy.”
Strategic analysts of Bank of America Corp. Led by Michael Hartnett, they said that investors would have to sell in a rally in US shares and the dollar.
The dollar is in the midst of a longer -term devaluation, and the shift away from US assets has even more road, they said. The trend will continue until the US Federal Bank begins to reduce interest rates, the US reaches a trade agreement with China, and consumer spending remains durable.
Foreign investors have sold US $ 63 billion shares since early March, Goldman Sachs Group strategic analysts say, noting that high frequency capital flows indicate that European investors have led to sales, while other areas continued to buy US shares.
Analysts predict that The trade war will hurt economic growth this year and next year, as duties will raise prices and reduce consumer spending.
The US economy is expected to grow by 1.4% in 2025 and 1.5% in 2026, according to the latest Bloomberg survey between economists, compared to 2% and 1.9% In last month’s poll. Analyst poll shows a 45% chance of recession over the next 12 months, from 30% in March.