Stocks Stall Near Records as Investors Await Earnings, Tariff Clarity – Europe Market Wrap

Stocks wavered Tuesday while investors braced for news from companies on how tariffs are filtering through to their earnings.

Futures on the S&P 500 were little changed after the gauge hit another record on Monday. Treasuries and the dollar steadied before speeches from Federal Reserve officials, including Chair Jerome Powell. The Fed leader has faced relentless criticism from the Trump administration, mostly over decisions to hold interest rates steady so far in 2025.

A record-breaking stock rally has powered on in the face of growing uncertainty over trade negotiations ahead of the Aug. 1 tariff deadline. But with valuations stretched, the strong second-quarter earnings season is failing to illicit much of a reaction from investors so far, as they wait for more concrete information on the tariff fallout.

After biting a series of all-time highs, the S&P 500 is trading around 22 times expected 12-month profits. The S&P 500 hasn’t posted a 1% up or down day since late June. Reports from megacaps Tesla and Alphabet are due Wednesday.

On the trade front, President Donald Trump may issue more unilateral tariff letters before the tariff deadline. White House Press Secretary Leavitt said. More trade deals may also be reached before the deadline, she added.