{"id":33307,"date":"2025-07-08T12:25:28","date_gmt":"2025-07-08T12:25:28","guid":{"rendered":"https:\/\/financialrush.com\/?p=33307"},"modified":"2025-07-08T12:25:28","modified_gmt":"2025-07-08T12:25:28","slug":"wall-street-turns-more-bullish-on-us-stocks-despite-donald-trumps-tariff-threats","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=33307","title":{"rendered":"Wall Street turns more bullish on US stocks despite Donald Trump\u2019s tariff threats"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->US equities<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=6b0dd7d3-479d-4487-8ab4-2d33046f060d&amp;concept-id=971c884d-f8fa-45c8-af59-bee0d7f28284\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Wall Street banks are turning more bullish on US stocks, despite President Donald Trump\u2019s renewed threats of steep tariffs on major trading partners, with most big companies expected to shrug off the turmoil in the upcoming earnings season.<\/p>\n<p>Goldman Sachs strategists this week joined JPMorgan Chase, Barclays, Citigroup and Deutsche in lifting their end-of-year target for the S&amp;P 500, believing the index will rally 11 per cent beyond the record high it hit last week.\u00a0<\/p>\n<p>Goldman said the administration\u2019s shifting tariff policy had generated \u201clarge uncertainty\u201d. But it added that the outlook had been buoyed by the \u201cfundamental strength of the largest stocks\u201d, hopes of \u201cearlier and deeper\u201d <a href=\"https:\/\/www.ft.com\/us-interest-rates\" data-trackable=\"link\">interest rate<\/a> cuts by the US Federal Reserve and investors\u2019 willingness to look beyond any potential weakness during second-quarter earnings season, which kicks off next week.<\/p>\n<p>The emerging optimism represents a major pivot since April, when Wall Street banks slashed their targets for the main US share gauge over growing fears about the fallout from <a href=\"https:\/\/www.ft.com\/trump-tariffs\" data-trackable=\"link\">Trump\u2019s trade war<\/a>. The president\u2019s decision to pause his most punishing tariffs has since sparked a rapid comeback for the S&amp;P 500, which is now up more than 6 per cent this year.<\/p>\n<p>Goldman\u2019s upgrade came on the same day that Trump issued a three-week reprieve for countries to negotiate deals with the US but also threatened steep levies on South Korea, Japan, South Africa and several other trading partners.<\/p>\n<p>Although the White House hinted that the latest proposed tariffs may yet be negotiated lower, the administration\u2019s blitz of trade announcements since early April has clouded the outlook for executives and investors alike, forcing several US companies to scrap entirely or lower their earnings forecasts due to higher expected input costs and retaliatory levies.<\/p>\n<p>Nevertheless, many investors have become inured to Trump\u2019s bombastic tariff threats. Wall Street stocks are largely expected to deliver solid second-quarter results, thanks in part to the resilience of the US economy, where the jobs market remains robust and inflation has fallen this year.<\/p>\n<p>JPMorgan, Citibank and BlackRock are due to kick off proceedings next Tuesday, before technology groups, including Google parent Alphabet and Meta, report their financials at the end of July. During the first-quarter earnings season, investors\u2019 positive take hinged on megacap stocks beating profit expectations and issuing bullish guidance. <\/p>\n<p>\u201cFor all the bad news in the past few weeks\u2009.\u2009.\u2009.\u2009risk assets have shaken off pretty much all of these concerns so far,\u201d said Max Kettner, chief multi-asset strategist at HSBC, referring to investors\u2019 willingness to buy stocks despite the uncertain policy outlook, Moody\u2019s recent downgrade of the US\u2019s credit rating and \u201cgeopolitical jitters\u201d in the Middle East.<\/p>\n<p>Energy stocks are expected to suffer a substantial profit hit from the drop in oil prices this year, while carmakers and consumer staples are tipped to bear the brunt of Trump\u2019s tariffs.\u00a0<\/p>\n<p>But the outlook is otherwise upbeat, with Citi strategists expecting average year-on-year earnings growth for the S&amp;P 500 index of 4.5 per cent, although the so-called Magnificent Seven megacap tech stocks may account for almost half of that.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image o-teaser--opinion js-teaser\" data-id=\"e7967944-f6c1-4929-bdf7-631e23470bdd\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/e7967944-f6c1-4929-bdf7-631e23470bdd\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2493\/1402\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Most banks have downgraded their earnings estimates for the second quarter since April, but HSBC\u2019s Kettner said \u201coverall expectations have been slashed too much in our view\u201d, creating \u201ca very low bar to beat\u201d. <\/p>\n<p>The fall in the dollar \u2014 down 10 per cent this year so far against a basket of other currencies \u2014 is also expected to help. Kettner said that megacap tech stocks derived about 60 per cent of revenues from overseas, making the weak US dollar \u201ca significant tailwind\u201d for earnings. <\/p>\n<p>\u201cWe have a general baseline that the earnings season will not be a major negative surprise,\u201d said Christian Mueller-Glissmann, head of global asset allocation research at Goldman.<\/p>\n<p>Of particular interest will be whether companies will shoulder the burden of tariffs themselves \u2014 which would eat into profits \u2014 or pass it on to consumers and potentially fuel inflation, Mueller-Glissmann added.<\/p>\n<p>\u201cWhat we\u2019re looking for is always margins,\u201d he said. \u201cIf you see any signs that returns on equity are being guided down because of some one-off [tariff] shock, that would certainly be something to be worried about.\u201d <\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/6b0dd7d3-479d-4487-8ab4-2d33046f060d\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US equities myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":6,"featured_media":33308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-33307","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/33307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33307"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/33307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/33308"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}