Reuters expects slower US companies’ earnings growth in Q2

American companies are set to release their second-quarter (Q2) financial results. Investors expect these figures to show signs of US trade policies' negative impact, following Donald Trump duty implementation in early April. The profit growth of American firms is likely to slow compared to the results for the first three months of the year. However, as Reuters notes, the sharp decline of the dollar could offset some of the losses.

The unofficial start of the earnings season in the United States will be July 15. On that day, JPMorgan Chase and other major US banks will report their April-June results.

Preliminary estimates from LSEG suggest potential year-over-year profit growth of 5.8% for American companies. In the first quarter, it rose by 13.7%. Meanwhile, the S&P 500 index remains near record highs. Investors are now questioning whether the upcoming financial reports will be strong enough to sustain the current US stock market’s elevated levels.

The situation is further complicated by Trump’s ongoing tariff disputes with the country’s trade partners. On Tuesday, the US President signaled readiness to impose 50% tariffs on copper imports, Reuters reports.