Corporate Recession Fears Fade Amid Rising Tariffs, Markets Remain Unfazed
Corporate America's anxiety about an impending recession has dissipated as swiftly as it emerged earlier this year. Only 16 S&P 500 companies mentioned "recession" during Q2 earnings calls—a stark drop from 124 in Q1, according to FactSet data. The term now appears at its lowest frequency since Q4 2021, signaling renewed confidence despite economic headwinds.
This optimism persists even as U.S. tariff rates climb to 20.1%, their highest sustained level since the 1910s following aggressive trade measures by the Trump administration. Market participants seem to anticipate tariff reductions through negotiations rather than enduring economic damage. Equity markets continue to price in resilience, with no evident correlation to cryptocurrency volatility.
