25 April | S&P 500

Trump's trade policies weigh on S&P 500 profits

Trump's trade policies weigh on S&P 500 profits

The US stock market was put at risk by the US administration's introduction of new trade duties. The average tariff level has already reached 22.8%, and it may rise to 32.6% as negotiations with over 50 countries are completed, Bloomberg Economics notes.

Experts have identified an alarming market dependence on the technology sector using data from the past two decades. Profit margins of S&P 500 companies have predominantly been shaped by IT firms, which posted record results of 34.1% this year. Excluding the technology sector leads to a significant decline in the operating margin of the index.

Bloomberg Intelligence data shows that analysts have already revised S&P 500 earnings forecasts for 2025 from 13% to 7.9%, confirming the negative impact of trade policy on business expectations.

According to Paul Nolte of Murphy & Sylvest Wealth Management, the technology sector's vulnerability poses additional risks to the entire S&P 500 index, as IT companies' share has grown significantly in recent years.

Period: 11.07.2025 Expectation: 920 pips
GBPUSD falls as UK GDP unexpectedly shrinks
Yesterday at 10:42 AM 23
Brent sell
Period: 17.07.2025 Expectation: 150 pips
OPEC's gloomy forecast drags Brent crude prices lower
Yesterday at 08:53 AM 35
Period: 17.07.2025 Expectation: 26000 pips
Institutional investor demand could push ETHUSD to 3,000
10 July 2025 56
Period: 16.07.2025 Expectation: 2000 pips
USDJPY prepares to retest 148 Level
10 July 2025 49
Period: 16.07.2025 Expectation: 900 pips
NVIDIA shares rise amid global AI infrastructure investments
09 July 2025 81
Period: 15.07.2025 Expectation: 800 pips
Breaking downtrend could push USDCAD to 1.375
09 July 2025 52
Go to forecasts