The fears of the United States companies of an imminent economic recession have evaporated as rapid as arose earlier this year.
The number of S&P 500 companies that mentioned the word “recession” during their gain call of the second quarter fell abruptly to only 16, below abruptly from 124 in the first quarter, according to Factset of the data source. A recession is defined as two consecutive rooms of negative economic growth, measured by the gross domestic product.
“The recession was pronounced only 16 times until now in the gain calls this quarter (4%)Below 124 in the first quarter and the average of 10 years of 61. After the fourth quarter ’24 he was the slightest of any room from Q4 ’21, “said Neil Sethi, managing partner of Sethi Associates, in X, citing Factset.
The decrease occurs when some observers fear that the commercial tariffs of President Donald Trump are beginning to affect the economy.
Perhaps the leaders of the company operate under the assumption that elevated tariffs will eventually be “diluted” through negotiations, instead of continuing to be a long -term economic burden.
Trump recently presented radical tariffs in addition to those announced in April in a movement destined to generate a boom in manufacturing. That has raised the average rate of the USA. UU. To 20.1%, the highest level sustained since the 1910s, according to the estimates published by the World Trade Organization and the International Monetary Fund.
The markets have also largely seen the fears of recession induced by the rate, with the S&P 500 increasing 28% since the fall of the beginning of April. Bitcoin, the leading cryptocurrency per market value, has increased to $ 122,000 of approximately $ 75,000, an increase of 62% in four months, as shown in Coindesk data.
According to JPMorgan, merchants have focused on resilient corporate profits and expected economic recovery after provisional deceleration.
More than 80% of the S&P 500 companies have recently reported their profits from the second quarter, with more than 80% exceeding profit expectations and 79% exceeding income forecasts. That is the strongest performance in four years.
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