CNBC Daily Open: The U.S. economy is not built on rock and roll

CNBC

18-07-2025

Despite the noise around tariffs and inflation fears, the U.S. economy seems to be holding its ground — for now. June retail sales came in stronger than expected, and weekly jobless claims dropped below forecasts.
Add to that a solid start to earnings season, and you've got a recipe for record highs: both the S&P 500 and Nasdaq notched fresh peaks.
So, is the economy truly resilient in the face of the Trump administration's shifting trade winds? Or are we simply in the eye of the storm, with August 1 — the Trump tariff deadline — looming on the horizon?
Remember, economic data is always a step behind. The real impact of tariffs may not show up for months, especially if businesses and consumers are stockpiling ahead of time and foreign exporters are cutting their prices.
Even when the new tariffs hit, the effects might be muted at first as inventories clear.Still, for now, investors can take comfort in the fact that markets are being lifted by fundamentals — not just fear or speculation.
And yes, to borrow a line from Starship: the U.S. economy is still built on rock-solid data… not on rock and roll.
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