Weekly Talking Points for Financial Advisors (8/11/25)

Read the highlights of this week's commentary from Helios:

• Despite the effective U.S. tariff rate climbing to 16%, 81% of S&P 500 firms beat earnings and 79% exceeded revenue forecasts, the strongest since Q2 2021. Technology-led gains as AI investment fueled growth, while tariff exemptions for U.S. manufacturing offered partial relief to impacted companies.
• The U.S. trade deficit narrowed significantly in June 2025, falling to its lowest level since September 2023. This was driven by a sharp drop in imports, particularly consumer goods and automobiles. The narrowed deficit was a key factor in the rebound of Q2 GDP. However, the year-to-date deficit remains higher than last year.
• The ISM Services Report for July 2025 shows the U.S. services sector is still expanding, but at a slower rate than expected. Employment is contracting, and prices are rising at a faster pace, indicating mounting inflationary pressure. The report also highlights that global trade tensions are beginning to impact businesses, with export and import indexes now in contraction.

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