Despite concerns about Donald Trump’s trade war, this revenue season shows that companies choose to focus on the upcoming headwinds that allow investors to largely get rid of tariff concerns. “Animal spirit of tariffs on tariffs” is the harvest of the income season,” Goldman Sachs chief economist Jan Hatzius said in a research note on Monday. He said that in addition to the results of energy companies, the real revenue of energy companies increased by 3.2% year-on-year due to resilient consumer spending. Hatzius added that aside from encouraging frontline results and comments, a more relaxed regulatory business environment under the Trump administration is strengthening the company’s optimism. “Deregulation may not be a recent headwind, but broader optimism and capital expenditure expectations have improved dramatically … strengthened our highly consensus CAPEX view in 2025,” the economist said. He said that business investment metrics have The Institute for Supply Management’s Purchasing Managers’ Index in manufacturing reached its highest level in two years last month. Additionally, business investment growth this year is about 5% growth, tax incentives and lower short-term lending rates increase business spending on new factories and AI, and a lower tax incentive rate. “The improvement in business optimism supports our high degree of consent to investment spending,” he said.
Why Trump’s tariffs won’t affect the stock market | Real Time Headlines
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