Market Awaits Turbulence: Tariffs and Earnings Reports Loom Large

The U.S. stock market is bracing for significant disruptions ahead of a tariff deadline extension and a series of pivotal economic reports. President Donald Trump has delayed the introduction of more severe tariffs until August 1, aiming for resolutions with trading partners. This could lead to market volatility next week.

Investors are keenly watching the Federal Reserve's monetary policy meeting, alongside earnings from tech giants like Apple, Microsoft, and Amazon. Key economic indicators, including the U.S. employment report and quarterly earnings, are set to unfold, leaving the market poised for potential fluctuations.

Despite the S&P 500 and Nasdaq surging since early April, market analysts note a need for consolidation as valuations soar. Meanwhile, volatility indices show a calmer market, yet some fear another wave of exuberance in high-risk stocks, cautioning of a possible correction.

(With inputs from agencies.)