US Stock Market Taking the Long View, Yardeni Says

Market Negotiation & Tariffs - The market interprets current tariff threats as negotiation tactics, similar to real estate dealings, expecting resolution within months [2][3] - The market anticipates that prolonged trade ambiguity could negatively impact the Republican Party in the midterm elections [4] Economic Resilience - The US economy demonstrates remarkable resilience despite tariff-related turmoil, with consumer spending holding strong [5][10] - Inflation has not significantly increased, with some indicators suggesting a near-zero rate for July [5] Labor Market & Employment - Industry payrolls rose by only 74,000, the lowest since 2004, raising concerns about underlying economic equilibrium [7] - Weak employment numbers, particularly in nonfarm payrolls (excluding government employment), prompted bearish sentiment [9][10] - The industry anticipates improved employment numbers and economic growth in the second half of the year [11] Optimistic Outlook - The US stock market is expected to take a long-term optimistic view, supported by the ongoing technology and digital revolution [6][7] - The US economy has been stress-tested by tariff turmoil and is passing the tests [10]