Trade tensions have not dampened market confidence. US corporate executives' optimism reaches highest levels since 2007.

Despite the lingering trade tensions and seemingly high stock valuations, executives in the current financial reporting season have an exceptionally optimistic view of the economy. According to reports, data from tracked sales, guidance and earnings conference calls show that the number of times "economic slowdown" and its synonyms are mentioned is at the lowest level since 2007. Despite the government shutdown causing an interruption in official U.S. data and leading to a more uncertain policy outlook, this situation is still unfolding. Meanwhile, the S&P 500 index is on track to achieve high returns for the third consecutive year, with stock prices just as expensive as their post-pandemic peak. The concerns of investors about tariffs severely damaging global growth and hurting company profits have largely failed to materialize. The third quarter financial reporting season shows that companies have mitigated the impact of tariffs by raising prices, cutting costs, and streamlining their supply chains. Consumers worldwide have also shown resilience.