Corporate America’s anxiety about a recession has sharply declined, despite the highest average tariff rate since 1910. According to FactSet, only 16 S&P 500 companies mentioned “recession” during their Q2 earnings calls, down dramatically from 124 in Q1. This marks one of the lowest recession mentions in recent years.
President Trump’s aggressive tariffs, which have pushed the average U.S. tariff rate to 20.1%, the highest sustained level in over a century, initially raised concerns about economic slowdown. However, many corporate leaders appear optimistic, likely expecting tariffs to ease through negotiations.
The markets have reflected this resilience. The S&P 500 has climbed 28% since April, while Bitcoin has surged 62% in the same period. With over 80% of companies surpassing earnings and revenue expectations, confidence is returning amid economic recovery signals.
Conclusion:
Despite high tariffs, Corporate America’s confidence is rebounding as strong earnings and market performance suggest the economy might avoid recession fears for now.
Takeaways:
Recession mentions in S&P 500 earnings calls dropped sharply in Q2.
U.S. tariffs are at their highest sustained level since 1910.
S&P 500 and Bitcoin have seen strong price gains since April.
Most companies are beating earnings and revenue expectations.
Corporate optimism may reflect expectations of tariff negotiations easing.
Source: CoinDesk
