The 30-stock Dow experienced a decline of 142.30 points, equivalent to 0.32%, concluding at 44,342.19. The S&P 500 experienced a marginal decline of 0.01% following its earlier achievement of a record high, ultimately concluding the day at 6,296.79. The Nasdaq Composite experienced a modest increase of 0.05%, concluding the session at 20,895.66.

Trump is insisting on a minimum tariff ranging from 15% to 20% in any agreement with the EU, according to a report by the Financial Times, which referenced three individuals familiar with the discussions. The European Union is striving to finalize a trade agreement with the United States prior to the August 1 deadline set by Trump, who has pledged to initiate 30% tariffs on the bloc at that time.

Market participants meticulously analyzed the most recent earnings reports alongside the latest economic indicators from the United States. Data released Friday indicated a decline in consumer apprehensions regarding inflation driven by tariffs, reaching their lowest levels since February. The University of Michigan’s Survey of Consumers for July indicated that overall consumer sentiment increased by 1.8% from June, reaching a level of 61.8. This figure aligns precisely with the estimate and marks the highest level observed since February.

In terms of earnings, Netflix experienced a decline of 5% following the company’s announcement that its operating margin for the latter half of this year is expected to be lower than that of the first half. 3M’s shares experienced a decline exceeding 3% following the company’s adjustment of its organic sales growth forecast, now indicating a projected increase of 2%. It previously provided a growth range of the “lower end of 2% to 3%.” A 2% decline in American Express following its earnings report contributed to a downward movement in the Dow.

In light of the varied responses to the recent corporate report, it is evident that the season has commenced with considerable vigor. As 12% of S&P 500 companies have reported their results to date, an impressive 83% have surpassed expectations. On Thursday, PepsiCo and United Airlines experienced a notable increase in their shares following the announcement that both companies surpassed analyst expectations regarding their earnings. Those follow solid results from major financial institutions such as JPMorgan and Goldman Sachs earlier in the week. Both the S&P 500 and Nasdaq recorded weekly increases, advancing by 0.6% and 1.5%, respectively. The Dow experienced a slight decline over the week.

“It’s a risk-on environment, and while there’s chatter about Fed cuts, the reality is more nuanced,” stated Ken Mahoney, CEO of Mahoney Asset Management. “Historically, bull cycles tend to perform better without rate cuts and the first cut is often a bearish signal, though there’s a valid case to be made this time around, especially with inflation cooling and GDP growth projections still intact after we got through the threat of massive tariffs.”