Markets have become less sensitive to tariff announcements than they were earlier this year.
Despite ongoing tariff threats from President Trump, stocks—including those most exposed to tariffs—are showing smaller reactions and continue to reach record highs.
Goldman Sachs strategist David Kostin notes that investors expect tariffs to settle at lower levels than initially announced, and key economic data has shown less impact from tariffs than feared. Optimism remains strong for the S&P 500, with projections of further gains driven by expectations of solid earnings growth in 2026.