10 February 2025

S&P 500 saw gains as investors appeared to grow accustomed to President Donald Trump’s latest tariff threats. Many on Wall Street now perceive these announcements as primarily a negotiation tactic.

However, concerns remain that the expanding list of tariff hikes could drive inflation higher, potentially delaying expected interest rate cuts. Investors will closely watch Wednesday’s release of the January Consumer Price Index (CPI) for inflation clues, along with retail sales data later in the week.

Meanwhile, the latest New York Federal Reserve survey, published Monday, revealed that consumers’ long-term inflation expectations have risen to 3%, the highest level since May 2024.

Although markets seem more resilient to tariff-related news, the broader economic consequences of these policies continue to be a key focus for investors and policymakers.

Feragatname