Wall Street Reaches All-Time Highs
On Thursday, Wall Street continued its gains from the previous day, with the S&P 500 and the Nasdaq Composite reaching new all-time highs. This development underscores the resilience of the markets despite the looming tariff conflicts exacerbated by the trade policy of US President Donald Trump.
Background of the Tariff Conflicts
US President Donald Trump recently announced new tariffs on products such as copper, semiconductors, and pharmaceuticals. These measures are part of a global trade war that creates uncertainty and influences the markets.
Market Resilience
Despite these challenges, Wall Street shows resilience. The S&P 500 and the Nasdaq Composite have reached new records. This indicates the markets’ ability to adapt to changing political conditions. The markets appear to be getting used to the US negotiation tactics, which often play with deadlines to build pressure and influence negotiations.
Influence of the US Dollar
The US dollar remains an important factor for the markets. Although the dollar index (DXY) has slightly decreased, the dollar remains strong against major currencies, partly due to its role as a “safe haven” in times of geopolitical tensions.
Comparison with Europe
Europe has recently experienced positive developments, particularly through the recovery of industrial production and interest in tariff agreements. The European markets, such as Frankfurt and Paris, have performed positively while London lagged.
Conclusion
The continuation of gains on Wall Street despite looming tariff conflicts demonstrates the markets’ adaptability to political changes. Market resilience is supported by the ability to adjust to new political conditions and the role of the US dollar as a safe haven in uncertain times.