The S&P 500 Index has defied expectations despite a tumultuous trade policy landscape, thanks in large part to strong performance from technology and communications companies. The sectors, which account for nearly half of the index’s weight, are projected to show over 14% earnings growth this year. Analysts point to the resilience of innovation leaders such as Nvidia Corp., Microsoft Corp., and Netflix Inc., whose business models are less susceptible to tariffs and consumer slowdowns.
Nvidia reported a 69% surge in revenue in its latest quarter, driven by strong demand for artificial intelligence solutions. Meanwhile, Microsoft’s cloud revenue increased by 20%, demonstrating the software giant’s ability to navigate trade uncertainties. Netflix also saw significant growth, with revenue rising 12.5% as it successfully raised subscription prices. These successes suggest that America’s innovation superstars will partially offset any potential damage from policy changes.
Source: https://www.bloomberg.com/opinion/articles/2025-06-02/why-the-s-p-500-is-cruising-through-policy-upheaval