1. JPMorgan lowers US recession risk to below 50% after tariff truce. 2. Tariff reductions may shift economic outlook from contraction to modest growth. 3. Lower tariffs could relieve consumer spending amid elevated inflation risks. 4. Job market risks persist; employment contraction expected later this year. 5. Federal Reserve may delay rate cuts until December due to economic uncertainties.
The reduction in recession risk and improved growth outlook typically support equity markets, especially the S&P 500. Historical instances show similar tariff negotiations often bolster market confidence, boosting stock indices.
The article reflects significant economic indicators that can shift investor sentiment towards growth stocks, affecting the S&P 500 directly. Changes in consumer spending and market conditions are critical to the index's performance.
The immediate effects of tariffs and recession predictions will influence market sentiment quickly. The S&P 500 often reflects changed economic forecasts in the short term, especially during fiscal policy shifts.