The US stock market, particularly the S&P 500 index, is showing growth and aiming for its previous highs. However, significant risks remain that could negatively impact market dynamics.
Upcoming Tariffs
The White House, led by Donald Trump, has until July 9 to decide whether to maintain certain tariffs on imports. This decision, which will affect billions in imports, represents one of numerous risks that could disrupt market momentum in the second half of the year.
Impact of Tariffs on Inflation
Jerome Powell, Chair of the Federal Reserve, testified to Congress that the central bank is closely monitoring how tariffs could lead to price increases. "The effects of tariffs will depend, among other things, on their ultimate level," Powell warned.
Market Risks and Recession Predictions
JPMorgan forecasts a 40% chance of recession in the coming months, pointing to clear signs of weakness in the housing market. Market strategies and investor expectations remain under pressure, and unsuccessful predictions could exacerbate the current state of the market.
Despite current optimism and growth of the S&P 500 index, significant risks still exist in the market, requiring careful attention from investors.
