Dow Jones and S&P500: US Indices Show Resilience Amid Tariff Fatigue Today

Market Performance and Sentiment

Wall Street traded in choppy waters Monday as major indices posted modest gains, with investors displaying growing immunity to the latest trade threats from the Trump administration.

By mid-session, the Dow Jones gained 7.98 points (0.02%) to 44,379.49, the S&P 500 advanced 3.66 points (0.06%) to 6,263.41, and the Nasdaq led with a 52.32-point (0.25%) gain to 20,637.85.

Trade Tensions Take Backseat

President Trump’s weekend announcement of a proposed 30% tariff on EU and Mexican imports, effective August 1, barely registered with investors suffering from “tariff fatigue.”

The market’s muted response reflects traders’ growing skepticism about Trump’s follow-through on trade threats, given his history of last-minute reversals. The EU’s decision to extend its pause on retaliatory measures until early August provided additional diplomatic breathing room.

Earnings Season Focus

Investor attention has firmly shifted to second-quarter earnings season, with Wall Street’s banking heavyweights set to report Tuesday.

This pivot toward fundamental corporate performance represents a maturation in market sentiment, prioritizing earnings data over political rhetoric.

Tuesday’s consumer price data and Wednesday’s consumer price data reports will provide crucial insights into inflationary pressures as businesses pass through tariff costs.

Sector Performance

Five of eleven S&P sectors posted gains, with Financials leading at +0.54% ahead of bank earnings, and Communication Services gaining 0.64%.

Energy suffered the steepest decline at -1.42%, while Materials fell 0.53%.

Technology showed mixed performance, declining 0.15% despite individual tech stock gains.

Individual Stock Highlights

Autodesk led gainers with a 5.95% surge to $297.08, while EQT Corp and Arch Capital Group also posted strong gains above 3.7%.

On the downside, Waters Corp plummeted 11.59% following its $17.5 billion merger announcement with Becton Dickinson. Semiconductor stocks struggled, with Micron Technology declining 4.39% and Intel falling 1.1%.

Federal Reserve Outlook

Cleveland Fed President Beth Hammack’s rejection of immediate rate cuts reinforced the central bank’s measured approach, while ongoing White House-Fed tensions added complexity to monetary policy expectations. Traders have nearly eliminated July rate cut expectations, with September probability around 60%.

Market Positioning

As Infrastructure Capital Advisors’ Jay Hatfield noted, the market finds itself in a “pause ahead of really big news,” with investors reluctant to take significant positions before key economic data and earnings releases. This cautious positioning reflects a focus on fundamental drivers rather than headline-driven volatility.

More Information in our Economic Calendar.