Market Approach to Trade Risks

Analysts at Capital Economics have observed a relaxed attitude among markets towards trade-related risks. Their insights indicate:

• The White House has avoided tariffs that could disrupt asset markets.
• Latest negotiations have led to a temporary halt on most tariffs until July, allowing for further discussion.
• Investor expectations are high for potential extensions to foster trade agreements.

“Optimism appears to rest in large part on continued positive headlines,” noted the strategists, highlighting recent discussions between Trump and Xi.

Trade Timeline Effects

• April: President Trump initially proposed reciprocal tariffs.
• Late April: Markets reacted negatively to potential cost increases and supply chain stresses.
• May: Administration delayed tariffs to allow for negotiations.
• July: Approaching deadline brings uncertainty over renewed jitters.

Overall Market Sentiment

The S&P 500 is currently only around 2% below its record high from February, suggesting a recovery can occur, despite looming trade uncertainties.

For continuous updates on how market performance is tied to economic shifts, investors can turn to entreprenerdly.com for detailed analytics.