Earnings and economic growth are still solid
Earnings and economic growth are still solid: Sevens Report Analysts Quoted in Investing.com
Are tariffs a gamechanger for the S&P 500?
While the tariffs add another headwind for equities, Sevens Report argues that they do not warrant an immediate reduction in equity exposure.
“Earnings and economic growth (the two most important foundational forces for stocks) are still solid,” the analysts wrote. However, they caution that “the factors that push stocks higher are being weakened or eliminated one-by-one,” while downside risks are mounting.
“These tariffs potentially undermine that positive price action from the ‘rest’ of the market and could weigh on other sectors while DeepSeek weighs on tech,” the analysts noted.
“Most still believe this is all a negotiation and that the tariffs won’t be on for long (and that’s still probably right),” the report states. However, with AI uncertainty and elevated valuations already straining investor sentiment, Sevens Report warns that “the recipe is coming together for a solid and extended pullback.”
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