The S&P 500 experienced a modest increase on Monday, despite President Donald Trump’s weekend announcement of potential high tariffs on additional countries. Losses were contained as investors speculated that those duties will ultimately be subject to negotiation and anticipated a bustling week for second-quarter earnings reports.
The S&P 500 experienced an increase of 0.14%, concluding at 6,268.56, whereas the Nasdaq Composite saw a rise of 0.27%, finishing at 20,640.33. The Dow Jones Industrial Average increased by 88.14 points, representing a 0.20% rise, concluding at 44,459.65.
Investors are keeping a close eye on the latest developments regarding tariffs, following Trump’s announcement on Saturday that the U.S. will implement 30% tariffs on the European Union and Mexico beginning August 1. Leaders of the EU and Mexico have expressed their intention to continue discussions with the Trump administration this month, aiming to reach an agreement on a reduced rate.
The announcement from the U.S. president precedes this week’s inflation readings, which are expected to provide investors with a clearer understanding of the economic impact of the Trump tariffs currently in place. Attention is focused on a series of earnings reports scheduled for release this week. Major banks, including JPMorgan Chase, are set to release their quarterly reports beginning on Tuesday. The significant inquiry for markets in the upcoming weeks is whether earnings, anticipated to be robust, can eclipse the ongoing tariff concerns that linger in the background,” stated Glen Smith, chief investment officer of Texas-based GDS Wealth Management. “Thus far, the market has demonstrated an ability to endure tariff-related news, prioritizing earnings and economic robustness instead.”
Another potential factor for investors to observe is the discord between the Trump administration and the Federal Reserve. On Sunday, National Economic Council Director Kevin Hassett informed ABC News that Trump has the authority to dismiss Fed Chair Jerome Powell “if there’s cause.” Officials from the Trump administration are investigating the expenses associated with the renovation of the Federal Reserve’s primary building located in Washington, D.C. Meanwhile, the president has consistently expressed discontent with Powell for failing to reduce interest rates. The central bank has countered various criticisms regarding the renovation project. Monday’s movements follow a week marked by declines in stock performance, yet the principal indices remain close to their historical peaks.