3 hours ago
4
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
Image
Andrew here. If you simply read the headlines, you’d think the world is more fragile than ever. But if you watched only stock tickers, you’d think that there is almost no risk in the market and that everything is looking up. So which is it? We take a look at the surprising divergence.
We also do a post-mortem on the Amazon Web Services outage, and we have a scoop on a deal in the cybersecurity industry.
A paradoxical market rally
A government shutdown. An expanding trade war. Turbulence in the credit and labor markets. And a data blackout that has forced Wall Street into a guessing game.
None of that is slowing down the S&P 500, which is near another high on Tuesday. The benchmark index has risen roughly 35 percent since President Trump announced reciprocal tariffs in April, according to Morgan Stanley.
But there are a growing number of reasons for market watchers to fear that the rally won’t last.
The latest test will come with the new quarterly earnings season. There are high expectations for bigger corporate profits.
One major question: Will tariff costs start showing up in the results this quarter? G.M. on Tuesday raised its full-year guidance as it lowered its forecast for how much the levies would cost the company.
