Fidelity: The impact of tariffs on the economy will gradually emerge, and the outlook for the U.S. stock market is conservative

Jian Li Heng, Director of Investment Strategy at Fidelity International, pointed out that there has been new progress in the China-U.S. trade negotiations, with both sides agreeing to temporarily reduce tariffs, leading to an optimistic market reaction. Although the impact of tariffs is relatively mild, the effects on future economic performance will gradually emerge. The market is concerned about a potential U.S. economic recession and stagflation, putting the Federal Reserve in a dilemma regarding interest rate policy. Fidelity holds a conservative view on the U.S. stock market while being more optimistic about the European market. Mainland Chinese companies have reduced their dependence on exports to the U.S., with future growth drivers coming from stimulating domestic demand and technological development. Investors tend to adopt a wait-and-see approach