US stock futures (ES=F, NQ=F, YM=F) are approaching record highs from earlier in the week, but there are concerns about potential risks in the near term. Scott Chronert, Citi head of US equity strategy, joins Morning Brief to discuss market risks and policy impacts.
"The market has been deservedly focused on Trump policies, all told. Tariffs get most of the discussion because of its seemingly more direct impact on fundamentals," Chronert explains, while also highlighting tax reform, deregulation, and government efficiency as relevant policies that could impact markets.
He points out that the market may face volatility, noting, "There's still upside for the S&P between now and year-end, but between here and there is probably an ongoing period of volatility."
Chronert adds, "You need the broadening effect, which is, I think, a real intrinsic positive for US equity fundamentals, but you also need that Mag Seven to continue to contribute. And that's where we're getting a little bit of pause right now."
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Watch the video above to hear Chronert fully discuss the factors driving market volatility.
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This post was written by Josh Lynch