Trade deals were made this week, and markets took note. Will the trend continue as more deals are ironed out?
Monday
S&P 500 0.14% | NASDAQ 0.38%
Monday’s trading looked to gain but were subdued as trade deadlines were nearing. Both the 2- year and 10-year Treasuries fell on the day with the uncertainty swirling on the international stage. Verizon reported positively, ultimately driving indexes higher.
Tuesday
S&P 500 0.06% | NASDAQ 0.39%
It was a relatively flat day as gains were held steady from Monday. Several consumer staples’ corporate earnings were announced, as well as defensive companies, showing little signs of cracking revenue.
Wednesday
S&P 500 0.78% | NASDAQ 0.61%
Markets surged on Wednesday as hopes for a deal with Japan were fulfilled and at a lower percentage than originally anticipated. The news came in before the August 1st tariff deadline. The S&P500 gained to a record high for a third straight day on the news as well as solid corporate earnings. Existing home sales, however, disappointed in June.
Thursday
S&P 500 0.07% | NASDAQ 0.18%
The gains continued into the back half of the week. Jobs strength, including those on unemployment and initial claims for financial support, remained neutral. Trade deals with the European Union (EU) also came into view.
Friday
S&P 500 0.40% | NASDAQ 0.24%
How about 5 days of gains and record highs for the S&P500? Trading met little resistance as trade deal concerns have dissipated. 2nd quarter GDP is expected to come in strong.
Conclusion
S&P 500 1.46% | NASDAQ 1.02%
This week proved to be more of the same as equities responded to earnings reports and more concrete trade details. There is a good chance that the reciprocal tariff model will trickle down in negotiations with other countries. As long as earnings remain strong and trade deals are solidified, markets look to have plans for additional upside. Barring any Federal Reserve Policy intervention, which would come in the Fall of 2026 at the earliest, equities may advance higher.
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