Stock market update: Despite the barrage of tariff news stocks have held up well. The S&P 500 closed within striking distance of a record high while the Nasdaq and Dow gained ground. The latter two indexes benefitted from a broadening of breadth that went beyond the “Magnificent Seven” tech sector leaders.
The broader market advance also reflected optimism that new trade agreements could be reached. President Trump pushed back the expiration of his new round of tariff rates to August 1 and signaled progress in talks with Japan, South Korea, and perhaps Europe. Industrial/materials and consumer discretionary stocks led the way higher.
Treasury auctions will compete with trade headlines this week, and should provide more feedback on demand for the U.S. dollar following the passage of last week’s budget bill. Earnings season will also continue, with second quarter earnings expected to rise less than 6% year over year and wide sector divergences persisting. Learn more in Schwab’s Earnings Preview.