Investors expect new tariffs delay and stocks decline — Markets Pulse

The latest Markets Pulse survey shows that even if the approaching July 9 deadline for US trade deals puts pressure on stocks, bargain-seeking investors won't let the stock market fall too sharply.

Nearly two-thirds of the 168 respondents believe buying US stocks on a drawdown will be profitable even after July 9. More than half of the survey participants believe a further delay in the imposition of duties is likely.

However, according to JonesTrading LLC chief market strategist Michael O'Rourke, investors should be cautious about buying the drawdown next week. As he stated, the S&P 500 is now at record highs and is trading at an exaggerated valuation while the economy is weakening. Such a backdrop leaves the index vulnerable to a broader correction.

Also, more than a half of the survey participants believe that the upcoming corporate reporting period will drive stocks lower. This underscores the potential risk to the S&P 500 in case of disappointing corporate reports. At the same time, 73% of respondents predict negative consequences for the stock market if tariffs will be restored to the elevated levels announced in April.