How much can Wall Street stomach? Stocks have seesawed as investors try to balance solid corporate earnings against escalating tariff headwinds and shifting economic data. Positive earnings from McDonald’s (stock up 4% after beating sales and profit expectations) and resilient consumer brands like Disney (profits up, but linear TV struggles) smoothed nerves earlier in the week. Meanwhile, tech names such as AMD and Super Micro Computer slumped on profit disappointments and China chip restrictions, dragging the Nasdaq lower by 0.7% Tuesday.
Yet, even as Wall Street cheered earnings, the S&P 500 retreated 0.5% amid concern over sluggish service sector data and the looming impact of new tariff rounds. HSBC, however, just lifted its year-end S&P forecast to 6,400, citing bullishness in AI and reduced trade uncertainty—for now. Can strong profits keep the rally alive if tariffs keep rising?
