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Emerging markets are betting on a post-tariffs winner — and it's not China or the U.S.

1. Southeast Asia grapples with trade tensions between the U.S. and China. 2. Goldman Sachs lowers GDP forecasts for Vietnam, Malaysia, and Thailand. 3. U.S. tariffs pose significant challenges for Southeast Asian export economies. 4. Emerging economies aim to diversify trade partners amid U.S. policy changes. 5. Intra-regional trade is reportedly growing faster than North-North trade.

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FAQ

Why Bearish?

The article suggests increased tariffs and economic slowdowns, which may negatively affect S&P 500 performance. Higher tariffs can lead to reduced earnings for export-oriented U.S. companies reliant on Asia.

How important is it?

Ongoing trade conflicts significantly alter the economic landscape, directly affecting multinational companies within the S&P 500.

Why Short Term?

Immediate effects of escalated tariffs will impact earnings forecasts shortly, similar to past trade conflicts impacting quarterly results.

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