S&p 500 Uncertainty Mounts Under Trump Policies
The S&P 500 is expected to finish 2025 up about 9% from now, but volatility will likely increase as a barrage of tariff announcements, job cuts and policy changes from President Donald Trump fuels uncertainty. The year-end target of 6,500 for the benchmark index is unchanged from a Reuters poll in November, which reflects concerns about tariffs threatening to add inflationary pressures at a time when the Federal Reserve has paused its rate-cutting cycle. Strategists say solid corporate earnings growth will continue to support gains in equities, but Trump's policies pose a significant unknown for markets and investors.
- The unpredictability of Trump's trade policies may be offset by the potential boost to the economy if he successfully implements his pro-growth agenda, which could lead to increased investment and job creation.
- What would happen to global economic stability if the US were to implement tariffs on major trading partners, such as China or Europe, potentially sparking a trade war?