It's Been 1 Year Since the Liberation Day Tariffs Were Announced. Here's Why the S&P 500 Didn't Crash

Summary

The S&P 500 has generated above-average returns over the past year despite the introduction of the Liberation Day Tariffs, suggesting the market has absorbed the impact of the tariffs. This resilience indicates a positive market sentiment. The lack of a crash in the S&P 500 implies that investors have factored in the effects of the tariffs.

Market Impact

The S&P 500's ability to generate above-average returns in the face of the Liberation Day Tariffs suggests a positive market impact, with the index showing resilience to trade policy changes. This could lead to a bullish sentiment in the equities market, particularly in sectors less affected by the tariffs.

Key Drivers

• Resilience of the S&P 500 to trade policy changes
• Above-average returns generated by the stock market

Risks

• Potential for unforeseen tariff escalations
• Impact of tariffs on specific sectors not yet fully realized

Time Horizon

Medium Term