U.S. economy will probably slow later this year, says Wells Fargo's Semana

Market Trends & Trade Impact - A trade deal with the EU removes a negative surprise from the markets [2] - US consumers are likely to bear the brunt of tariffs, potentially slowing the US economy [3] - Trade concerns may fade if the European deal is finalized and China trade issues are postponed [2] - The market has largely priced in a positive scenario, potentially overvaluing current conditions [7] - Fear-based investing has generally performed poorly in the past decade [11] Investment Strategies & Sector Focus - Staying invested is recommended, particularly in sectors with secular drivers unrelated to trade, such as AI [13] - Favored sectors include US large-cap equities, tech, communication services, financials, and utilities [13][14] - Less favored sectors include small caps, emerging market equities, and consumer discretionary, due to their greater exposure to trade and tariffs [15] - Equities, especially in favored sectors, are relatively attractive compared to bonds, which offer near-zero after-tax, after-inflation yields [16] Market Valuation & Outlook - The S&P 500 is up 12% since the Liberation Day announcement, exceeding initial expectations [10] - NASDAQ 100's forward earnings multiple is at 28 times, below the pandemic peak of 30 times [11]