Why Markets Are At Record Highs Despite Global Tariffs
Stock markets continued to record highs despite the looming August 1 hike in tariffs. This is for good reason. After April 3’s Liberation tariff announcement, the White House almost immediately paused the proposed tariff rates.
When the trade negotiation deadline of July 9 passed, nothing happened, either. In response, the S&P 500 (IVV) and Nasdaq (QQQ) closed at a record high. Alphabet (GOOG) gained 2.7%, ahead of its earnings report for Wednesday.
CEO Elon Musk’s involvement at DOGE is now a distant memory. Global sales of Tesla (TSLA) vehicles plunged, especially in Europe. Profit margins will shrink, yet TSLA stock performed well.
Big technology, known as the magnificent seven, will propel the S&P 500’s earnings per share growth. According to LEG I/B/E/S, the EPS growth in Q2 is 6.7%.
In today’s trading session, expect trading volume to exceed the average. Yesterday, trading volume on U.S. exchanges saw 19.7 billion shares traded. The average volume is 17.7 billion shares over 20 sessions.
Watch for mining stocks like Cleveland Cliffs (CLF) and Freeport-McMoRan (FCX) to continue their uptrend. Conversely, speculations like Opendoor (OPEN) risks falling sharply. Opendoor traded as high as around $5.00 on Monday, compared to a 52-week low of $0.51. Shorts hold a 21.42% short float against the stock.
