Market Trends & Fundamentals - The market has become somewhat desensitized to the back-and-forth of tariff situations [9] - Strong fundamentals are supporting price trends, suggesting no overall bubble, though some market segments may exhibit excessive optimism [6] - Increased demand and expected earnings growth are driving returns, rather than valuation increases [4] - Valuations for many larger companies are at or below where they were at the start of the year [5] Company Performance & Outlook - Some "Mag Seven" companies (Tesla, Apple, Amazon) are laggards, while smaller software and service companies struggle to differentiate [12][13][14] - Winners among the "Mag Seven" are expected to continue performing well [13][14] - Companies like TSMC and ASML show strong demand, even with concerns about China [2][7] China Exposure & Risk - The market is weathering headline risk related to China [1] - A trade deal with China is anticipated, making current volatility a risk premium realization [10] - Companies with high exposure to China require careful consideration, but the market has shown resilience to tariff-related news [8][9]
Tech Pushes Higher Despite Trade Tensions
Bloomberg Technologyยท2025-10-17 17:38