Tariff concerns resurface, bullish sentiment in US stocks cools

According to Zhitong Finance APP, this week the optimism in the U.S. stock market has waned as U.S. President Trump’s new tariff announcement has once again unsettled investors. According to a survey by the American Association of Individual Investors (AAII), for the week ending July 9, the bullish sentiment was at 41.4%, down from the latest figure of 45%. Meanwhile, bearish sentiment rose again after two consecutive weeks of decline, with this week’s figure at 35.6%, compared to 33.1% the previous week. Trump's tariff policy has once again become the focus. The U.S. President stated on Sunday night that any country aligning with what he calls the "anti-American policies of the BRICS nations" will face an additional 10% tariff, with no exceptions. Trump also announced a 50% tariff on imported copper and stated that he would not extend the deadline for reciprocal tariffs that take effect on August 1. On Tuesday, the market faced pressure due to uncertainties in trade dynamics. However, after two consecutive days of decline, the market rebounded again on Wednesday. The reason was that NVIDIA (NVDA.US) became the first publicly traded company to reach a market capitalization of $4 trillion on Wednesday. According to data from the American Investor Association, the neutral expectation that stock prices will remain basically unchanged over the next six months has also changed. This week, the figure was 23%, compared to 21.9% last week. This survey has been conducted by the American Association of Individual Investors since 1987, asking respondents about their views on market trends over the next six months. Meanwhile, as the S&P 500 index continues to hit historical highs, the number of individual stocks reaching new highs in the market is quite limited, which is not a good sign for traders worried about the market becoming increasingly concentrated in a few large tech stocks. Analysis from Oppenheimer shows that while the S&P 500 index continues to set new highs, the number of companies reaching new highs on the New York Stock Exchange is only 88 more than those reaching new lows. This "narrow market breadth" has historically been seen as a precursor to weak market performance. Historical data shows that since 1972, when the S&P 500 breaks new highs, if the difference between the number of companies reaching new highs and new lows does not exceed 100, the returns over the following 12 months are often below average