Back into orbit

Time to take stock after the summer break. US equity markets have staged a remarkable comeback following the uncertainty triggered by Trump’s tariff announcement on “Liberation Day.” For market historians, the rally in the S&P 500 ranks among the strongest of the past two decades – surpassed only by the rebounds after the Global Financial Crisis and Covid.

Short-term rates are easing, volatility is contained, and corporate earnings are holding up. The risks for equities, however, are shifting elsewhere – a theme we will explore in the coming days.