How can stocks rally as recession warnings mount and tariffs bite? US stock markets rose modestly even as President Trump dropped the tariff hammer and economic data disappointed. On Wednesday, the S&P 500 climbed 0.7%, the Nasdaq jumped 1.2%, and Apple shares soared over 5% on news of a $100 billion US manufacturing investment. Oil prices also ticked up on the latest tariff boosts on India, while select tech and consumer firms weathered the policy storms with resilience—at least for now.
Investors are choosing to focus on robust earnings beats from tech, retail, and even some industrial names. Still, analysts warn market optimism feels fragile. The unspoken calculation? Big US firms have deep supply chains and adaptability, but the drag from tariffs—especially if consumer spending buckles—could still hit valuations hard in the coming months.
