The brokerage believes the S&P 500's upside through the 6,100 mark depends on continued reacceleration in earnings revisions, as interest rate relief remains elusive.
Dimon noted that the full impact of Trump’s tariffs on the economy is not apparent yet, even as some analysts expressed optimism about the outlook for U.S. equities.
U.S. stocks trimmed early-session losses by midday Monday, as investors showed limited concern after Moody's downgraded U.S. sovereign credit from Aaa to Aa1, effectively stripping the world's largest economy of its last top-tier credit rating.
According to Dalio, Moody’s downgrade only focuses on the government’s capacity to repay its debt, not the risk of its being able to print more money to repay that debt.
Morgan Stanley’s Wilson noted that the corporate earnings season has shown no major impact due to Trump’s tariffs, and a slew of recent profit upgrades is another green sign.
Trump signed an executive order to lower drug prices, which could hit pharmacy benefit managers (PBMs) hard. PBMs have come under scrutiny for opaque pricing practices. Mark Cuban calls PBMs a racket.
The advance first-quarter GDP estimate released late April showed that the economy contracted at a 0.3% rate, with the weakness stemming primarily from an increase in imports.
The former Fed Chair explained that the central bank’s announcements of its monetary policy decisions are accompanied by relatively little economic context or explanation other than what emerges from the chair’s comments and the press conference.
