The fears of American companies of an imminent economic recession evaporated as quickly as they appeared at the beginning of this year.
The number of S&P 500 companies which mentioned the word “recession” when they call for profits in the second quarter fell sharply to 16 years old, decreased clearly from 124 in the first quarter, according to Data Source Factst. A recession is defined as two consecutive quarters of negative economic growth, measured by the gross domestic product.
“The recession has not been pronounced only 16 times so far on results calls this quarter (4%)Decreasing compared to 124 in the first quarter and on average 10 years of 61. After the fourth quarter 24, it was the least in the quarter since the fourth quarter 21, “said Neil Sethi, director of Sethi Associates, on X, citing Factst.
The decline comes as some observers fear that President Donald Trump’s commercial prices are starting to have an impact on the economy.
Perhaps the business leaders operate by assuming that the high prices will ultimately be “sweetened” through negotiations, rather than remaining an economic burden in the long term.
Trump recently unveiled scanning prices in addition to those announced in April in a movement aimed at generating a boom in manufacturing. This has raised the average American rate rate to 20.1%, the most sustained level since the 1910s, according to estimates published by the World Trade Organization and the International Monetary Fund.
The markets have also largely examined the recession fears induced by the prices, the S&P 500 increasing by 28% since the drop in early April. Bitcoin, the main cryptocurrency by market value, increased to $ 122,000, from $ 75,000, an increase of 62% in four months, according to Coindesk data.
According to JPMorgan, traders focused on the resilient benefits of companies and the economic recovery expected after the provisional slowdown.
More than 80% of S&P 500 companies recently published their profits in the second quarter, with more than 80% of the expectations of profits that beat the profits and 79% of the exceeding income forecasts. It is the strongest performance in four years.
Read: Here are 3 upward reasons for which JPMorgan sees the S&P 500 rallying much higher
