Trump's Tariffs Have Limited Impact, Potential for Increased Market Uncertainty in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: NASDAQ.COM
- Tariff Impact Analysis: Since Trump's return to office, the tariffs have had a relatively mild impact on the stock market; despite a temporary drop in the S&P 500 due to the 'Liberation Day' tariff announcement in April 2025, the index finished the year up 16%, demonstrating market resilience.
- Inventory Strategy Cushion: Many companies proactively increased their import inventories before tariffs were implemented, effectively cushioning the earnings impact in 2025, although this strategy contributed to a negative GDP growth in the first quarter.
- Future Inflation Risks: As inventories deplete, companies are expected to pass on tariff-related costs to consumers in 2026, potentially leading to rising inflation and influencing the Federal Reserve's interest rate policies, thereby increasing market uncertainty.
- Market Reaction Expectations: While Trump may continue to de-escalate trade tensions, any renewed attempts to control Greenland through tariffs could elicit negative market reactions, highlighting investors' sensitivity to potential policy changes.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAC is 61.17 USD with a low forecast of 55.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 51.810
Low
55.00
Averages
61.17
High
71.00
Current: 51.810
Low
55.00
Averages
61.17
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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