Markets have grown less reactive to tariff announcements than they were earlier this year.
Despite recurring tariff threats from President Trump, stocks — including sectors and companies with greater exposure to potential tariffs — now show smaller price swings and continue to push toward record highs.
Goldman Sachs strategist David Kostin observes that investors increasingly expect actual tariffs to settle at levels lower than the initial announcements. In addition, recent economic indicators have shown less damage from tariffs than many had feared, supporting calmer market responses.
Confidence around the S&P 500 remains elevated, with forecasts anticipating further gains as investors factor in robust earnings growth projected for 2026. That combination of moderated tariff expectations and resilient corporate fundamentals has helped markets absorb policy noise without the sharp sell-offs seen earlier in the year.
