Markets Edge Higher Despite Tariff Jitters; Eyes Turn to CPI and Big Bank Earnings
Stocks rebounded from early weakness as tariff headlines spurred caution, but investor focus shifted to upcoming CPI data and major earnings reports from JPMorgan, Citigroup, and Wells Fargo.
Markets Close Higher as Tariff Fears Fade, Earnings and CPI Take Center Stage
U.S. stocks managed to rebound from early-session losses on Monday, with the Nasdaq setting a new record close and the S&P 500 inching up 0.1%. Markets shrugged off fresh tariff threats, choosing instead to focus on upcoming economic data and a loaded earnings calendar.
🌍 Tariffs Return to Headlines — But Market Holds Steady
The session opened with jitters after the U.S. proposed a new 30% tariff on goods from the EU and Mexico starting August 1. However, markets quickly stabilized on news that both the EU’s Executive Commission head and the Mexican President were open to negotiating better trade terms before the deadline.
In a separate geopolitical development, President Trump announced potential secondary tariffs of up to 100% on Russian goods beginning September 1 if no ceasefire agreement is reached in the Ukraine conflict.
Despite these headline risks, markets exhibited classic resilience. Recent tariff threats have repeatedly failed to derail the broader uptrend, and today was no exception.
💹 Eyes on CPI, PPI, and Retail Sales This Week
The muted trading session reflected a classic “wait-and-see” stance from investors. With no major U.S. data on the calendar today, market participants are preparing for key macroeconomic releases:
Tuesday: June Consumer Price Index (CPI)
Wednesday: June Producer Price Index (PPI)
Thursday: June Retail Sales
Treasury yields moved in a tight range as traders held off on big bets ahead of these critical data points.
🏦 Big Banks Set to Report Tomorrow
The financial sector saw mild gains (+0.7%) ahead of Tuesday’s earnings barrage from major banks:
JPMorgan Chase (JPM): +0.6% to $288.70
Citigroup (C): +0.9% to $87.50
Wells Fargo (WFC): +1.1% to $83.43
Positioning ahead of earnings likely contributed to financials finishing as one of the day’s best-performing sectors.
📺 Tech and Communication Services Climb
The communication services sector also outperformed (+0.7%), led by Netflix, which rose 1.26% to $1260.81 ahead of its Thursday earnings. Other mega-cap names added to the gains:
Alphabet (GOOG): +0.8%
Meta Platforms (META): +0.5%
Mega-cap tech overall outpaced broader benchmarks, with the Vanguard Mega Cap Growth ETF rising 0.3%.
📉 Energy Under Pressure
The energy sector was the day’s lone significant laggard, down 1.2%, tracking crude oil’s 2.3% slide to $66.90 per barrel.
🔍 After-Hours Movers
La-Z-Boy (LZB): -4.4% after guiding Q1 sales and margins to the low end of previous forecasts.
Ascendis Pharma (ASND): -1.9% despite positive Phase 3 trial data.
Cavco Industries (CVCO): -1.8% after announcing a $190M acquisition of American Homestar.
Simulations Plus (SLP): +1.0% after strong Q3 results and upbeat FY25 guidance.
Marriott (MAR): Unchanged following CFO succession news.
Churchill Downs (CHDN): Unchanged after announcing a major gaming development deal.
Power Integrations (POWI): Unchanged after naming a new CEO.
🌐 Global Markets Recap
Europe: DAX -0.4%, FTSE +0.6%, CAC -0.3%
Asia: Nikkei -0.3%, Hang Seng +0.3%, Shanghai +0.3%
📦 Commodities Snapshot
Crude Oil: $66.59 (-1.81)
Natural Gas: $3.36 (+0.11)
Gold: $3325.60 (+4.60)
Silver: $37.32 (+0.68)
Copper: $5.59 (+0.09)
Outlook:
Investors remain cautious yet optimistic. As tariff anxieties simmer in the background, attention now turns to tomorrow’s CPI report and key earnings from big banks. The next few sessions could set the tone for Q3’s early trading momentum.