Tariff Tensions Loom Over U.S. Markets Amid Corporate Earnings

U.S. equities saw a slight decline on Friday after the S&P 500 and Nasdaq reached record closes the previous day. Investors focused on upcoming corporate earnings and monitored the latest developments on U.S. tariffs, with economic data shaping market sentiment. The dollar weakened while U.S. Treasury yields fell.

Consumer sentiment showed improvement in July as inflation expectations declined, according to the University of Michigan's Surveys of Consumers. However, concerns remain about future price pressures. U.S. single-family homebuilding dropped significantly, highlighting economic uncertainties impacting residential investment.

Geopolitical tensions were evident as U.S. President Donald Trump insisted on a minimum tariff rate in negotiations with the EU. Investors anticipated volatility as Tariff headlines emerged, impacting companies like American Express and Netflix. Wall Street indices, like the Dow Jones and S&P 500, saw movements as traders positioned themselves ahead of earnings announcements.

(With inputs from agencies.)