Story perspectives

Trump's Return Boosts Emerging Markets Amid Earnings Decline

9/3/2025

Summary

Story summary

Donald Trump's return to the White House has positively impacted emerging-market equities, reflected in the MSCI Emerging Markets Index from January to August 2025.
Corporate earnings are declining, with firms missing profit forecasts for 13 consecutive quarters.
Analysts caution about increased volatility from tariffs and trade frictions affecting earnings.
Average earnings estimates for the MSCI EM Index have decreased, requiring an 11.4% increase to meet expectations.

History

Historical Context

The 2008 financial crisis prompted significant regulatory reforms, including the Dodd-Frank Act, aimed at stabilizing financial markets. In 2025, Donald Trump's return to the presidency influenced emerging-market equities, as evidenced by the MSCI Emerging Markets Index. However, ongoing trade tensions have led to firms missing profit forecasts for 13 consecutive quarters, highlighting the lasting impact of regulatory changes and market volatility on economic recovery.

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Story summary

Donald Trump's return to the White House has positively impacted emerging-market equities, reflected in the MSCI Emerging Markets Index from January to August 2025.
Corporate earnings are declining, with firms missing profit forecasts for 13 consecutive quarters.
Analysts caution about increased volatility from tariffs and trade frictions affecting earnings.
Average earnings estimates for the MSCI EM Index have decreased, requiring an 11.4% increase to meet expectations.

1 / 2