Posts with tag: critical thinking
While tariffs potentially pose significant threats to corporate earnings, the stock market remains resilient, trading near record highs, reflecting speculation that tariffs may be short-lived or less impactful. However, analysts believe tariffs could reduce EPS by 1-8%, affecting at least two-thirds of S&P 500 EPS growth in 2025. Uncertainty surrounding tariffs poses additional risks to businesses. Notably, strong earnings performance, a key driver of stock prices, remains a positive factor. Despite mixed signals from sentiment surveys and hard economic data, positive operating leverage from cost restructuring and technological advancements has contributed to robust earnings growth. Despite inflation concerns and geopolitical tensions, investors remain positive about the long-term market outlook.
Published on: February 10, 2025, 01:02 PM UTC