Fiscal Firepower and Trade Realignments

This weekly Market Flash from Edmond de Rothschild Asset Management analyzes the economic and market implications of the expansive U.S. fiscal package (“One Big Beautiful Bill”) and shifting global trade dynamics.

• The U.S. passed a $4.5 trillion tax-cut-heavy bill, raising the debt ceiling and expanding defense and border spending, while slashing Medicaid and education access.

• Despite ongoing trade tensions, markets remained resilient, supported by strong U.S. jobs data, robust credit flows, and continued AI-driven tech outperformance.

• European and emerging market equities gained from improving sentiment, stimulus expectations, and upbeat corporate activity.

For a deeper understanding of policy-driven market rotations and credit positioning, delve into the full analysis.