Tariffs, Earnings, and Market Jitters: A Week on Wall Street
Wall Street experienced significant volatility, with main indexes dropping after reports of new tariffs on EU goods by President Trump. As the August 1 deadline for tariffs approached, markets watched closely, despite strong earnings results from firms like American Express. Fed interest rate cut odds rose to 58%.
On Friday, Wall Street's major indexes declined following a report by the Financial Times indicating President Donald Trump's push for substantial tariffs on European Union goods. The S&P 500 and Nasdaq immediately turned negative after news emerged of a reciprocal tariff rate proposal, despite potential deals with Europe.
As the deadline for tariffs loomed, U.S. trading partners scrambled to negotiate with the White House. Investor nerves remained unsettled as trade talks showed little progress. Major declines included 3M, which fell 5%, and Netflix, which dropped 5.3%, despite surpassing earnings forecasts.
With economic uncertainty, traders now estimate a 58% chance of a Fed rate cut in September. The S&P 500 and the Dow saw only slight gains amid mixed economic indicators and increasing political noise surrounding Fed Chair Powell. Nonetheless, early earnings reports were positive, with a majority beating expectations.
(With inputs from agencies.)
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