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Tariff Costs Put New Pressure on U.S. Corporate Profits

Rising tariff expenses are beginning to weigh heavily on U.S. companies, prompting executives across multiple industries to warn that profit margins may tighten in the months ahead. Many firms had initially suggested they could manage the added costs through efficiency improvements or selective price increases, but that confidence is fading as import-related expenses continue to climb. Companies that rely on global supply chains are feeling the strain most acutely. Higher costs on imported materials and components are forcing difficult decisions: pass the increases on to consumers, risking weaker demand, or absorb the costs internally, which directly erodes profitability. For many businesses, neither option is attractive. Consumer-facing brands are finding it especially challenging to raise prices further, as shoppers show growing sensitivity to even modest increases. This resistance limits the ability of firms to offset tariff-driven expenses, creating a squeeze that is beginning t...
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Wall Street Futures Dip as Holiday-Shortened Week Concludes

 

 U.S. stock index futures fell on Friday as Wall Street wrapped up a holiday-shortened week. The Dow Jones Industrial Average futures dropped 119 points (0.27%), while S&P 500 futures declined by 22 points (0.36%). Futures tracking the tech-heavy Nasdaq 100 also fell by 92.25 points (0.42%).

Despite the dip, the S&P 500 has nearly recovered from last week's losses, driven by the U.S. Federal Reserve's projection of fewer interest rate cuts in 2025. The benchmark index is now just 1% below its all-time high reached on December 6.

Investors are now eyeing the "Santa Claus rally," a traditional stock-buying season in the last five trading sessions of December and the first two of January. Historically, the S&P 500 has climbed 1.3% on average during this period since 1969.

Trading volumes have been lower than average this week and are expected to remain subdued until January 6. The next major focus for markets will be the December employment report due on January 10.




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