Uncertainty about potential changes in policy From President Trump, he a little distracting the 2025 rally, with the S&P 500 (^GSPC) sitting just below her Record high reached on Wednesday.
But some on Wall Street become concerned that much of the positive news about Trump’s upcoming policies – including tax reduction, lower regulations on the regulator and reducing the government costs – could be appreciated. This leaves more space for disappointment than for a surprise with a sudden one clarity what is next in Washington.
Near: February 21 at 16:53:01 Est
“The S&P 500 Action Action signals that investors are still looking at the bias” Pro-Business “on the platform,” said a strategist Cita US Equity Strategist Scott Chronert in the note. “We disagree, but we also claim that related disorders of politics with the basics will still not be priced.”
Chronert added that there were no significant changes in their full view, which includes the goal at the end of the year from 6,500. For now, his team sees “more close to the risk of Trump’s lack of policy effects than an opportunity upside down.”
At this point, Chronert believes that investors “look comfortable that tariff pressures should lead to a muted eventual impact.”
But the question is whether the tariffs were actually brought.
Trump’s initial Tariff deadline from February 1 for 25% duties on Mexiss and Canada Shook the market for a short time Before one -month extension cooled fears Less than 24 hours later. Since then, many strategists have viewed these specific tariffs as a negotiating tactic, not as a real policy that investors should appreciate on the market.
Read more: What are tariffs and how do they affect you?
With a 30-day extension deadline for negotiating with Canada and Mexico are quickly approaching in early March and News of additional tariffs that flow inInvestors believe that there could be a chance for markets for another surprise.
“I think the consensus is [the Mexico and Canada tariffs were] Used for certain types of negotiations and they are unlikely to be implemented, ”David Rogal, the main manager of the Blackkrock Fund portfolio for the overall return (Mahx), Yahoo Finance said.
Rogal added that if these negotiations look for “turn to even worse,” there would be a “risk of lack” for markets.
In the notes of clients in early February, when 25% of tariffs on Mexico and Canada appeared directly, the main American strategist of American capital Goldman Sachs, David Kostin, noted that such large tariffs represent the “risk of lack of” for the forecast of the S&P 500. In combination with increased uncertainty of politics, the costume claimed that the fair value of the S&P 500 could see short -term a flaw of approximately 5% if the market prices “permanent implementation of newly renovated tariffs”.
