U.S. stocks remain resilient despite steep tariff hikes, slowing job growth, and Trump’s public criticism of the Bureau of Labor Statistics, according to AOL. The S&P 500 is up nearly 8% this year, supported by stronger-than-expected corporate earnings and optimism over AI-driven growth, though valuations sit above historical averages at about 22 times forward earnings. Trump’s “One Big Beautiful Bill” cut corporate taxes and increased defense spending by $3.4 trillion over the next decade. Average tariff rates have surged from 2.5% to nearly 20%, with Treasury projecting $300 billion in tariff revenue this year. Economists warn tariffs could weigh on growth more than tax cuts and deregulation can boost it, with the IMF forecasting U.S. growth of no more than 2% in 2025 and 2026. Investor uncertainty lingers as the administration considers new tariffs on pharmaceuticals, semiconductors, and potentially Chinese imports.
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