The Globe and Mail reports in its Monday, Aug. 18, edition that the recent rally in the stock market may seem puzzling given that the effective tariff rate on U.S. imports is at its highest since the 1930s. A New York Times dispatch to The Globe reports that despite this, the S&P 500 continues to set new highs. While concerns about tariffs exist, corporate profits are strong, and major companies driving the S&P 500 are largely unaffected. Citigroup analyst Stuart Kaiser says, "There is a case to be made there that we are through the worst of it." Most S&P 500 companies have reported earnings for the three months ending in June, showing an average growth rate in double digits for the third consecutive quarter. Once again, major tech companies drove the market, helping to validate their elevated stock prices. In contrast, the energy sector experienced further contraction, and manufacturers continued to struggle, but this was overshadowed by the impressive growth of the so-called Magnificent Seven. Although retailers and other consumer-facing businesses have voiced concerns about tariffs, the overall sentiment among the large corporations that make up the S&P 500 is that these tariffs are manageable.