1. US consumers will pay 55% of Trump's tariffs, raising inflation. 2. Tariffs may drive inflation above the Fed's 2% target by December. 3. Companies are diversifying supply chains due to tariff impacts. 4. Goldman predicts evolving tariffs may change tariff cost distribution. 5. The government shutdown affects the release of crucial economic data.
Higher consumer costs from tariffs typically reduce discretionary spending, impacting S&P 500 companies negatively. Historical examples include previous tariffs leading to market corrections when inflation rose significantly.
The article underscores significant economic shifts due to tariffs, which directly affect S&P 500 earnings and investor sentiment.
Immediate consumer reactions to increased costs likely affect quarterly earnings, particularly in retail and consumer sectors. S&P 500 companies with exposure to consumer goods may see short-term declines.