S&P 500 Eked Out a Gain as Trump is Open to Trade Discussions – US Market Wrap
Wall Street traders parsed Trump’s recent tariff words, sending equities slightly higher, as the market prepares for large bank results and inflation data. Bond yields and the dollar pushed higher. Oil dipped as the US president’s plan to pressure Russia into a cease-fire with Ukraine lacked fresh measures aimed directly at limiting Moscow’s energy exports.
The S&P 500 remained near its all-time high as Trump signalled his willingness to engage in trade talks, although insisting that the letters threatening additional tariffs are “the deals.” While corporate America braces for its weakest earnings season since mid-2023, lower estimates may be easier for corporations to beat. As US financial heavyweights begin earnings season on Tuesday, strategists think subdued profit expectations are paving the way for their hot streak to continue.
This weekend, President Trump issued additional tariff threats, declaring a 30% rate for Mexico and the European Union and alerting important trading partners of new rates that will take effect on August 1 if better terms are not negotiated.
In the lead up to the consumer price index. Treasuries saw minor losses. After months of low inflation, the CPI likely grew slightly quicker in June as businesses began to pass on the greater cost of imported goods related with tariffs. Bond price movements also indicated investor concerns about governments’ ability to contain budget imbalances.
