Global Markets Brace for Impact as Trump’s Tariffs Fuel Uncertainty

The S&P 500's 25% surge since April faces mounting skepticism as President Trump's aggressive tariffs—reaching up to 35%—inject volatility into global markets. RBC Capital's upgraded 6,250 year-end target comes with a stark warning: the second half of 2025 may deliver a turbulent ride for investors. Trade tensions with Canada, the EU, and Mexico now threaten to derail what many hoped WOULD be a V-shaped recovery.

Inflation emerges as the silent accomplice to trade wars, with June's CPI expected to climb 0.3% monthly and 2.7% annually. Used cars and travel costs lead the charge, signaling that tariff-induced price pressures are metastasizing through the economy. While the Federal Reserve maintains its watchful stance, a hotter-than-expected CPI print could force policymakers' hands sooner than markets anticipate.