S&P 500 Index: Tariff Headlines Fade as Crypto Stocks Outperform

Markets Shrug Off Trump Tariff Threats as Indexes Hold Near Records

Major U.S. equity indexes closed mixed Friday after briefly selling off on reports that President Trump is pursuing steep tariffs on European Union products. The S&P 500 lost just 0.57 points to 6,296.79, while the Nasdaq gained 10.01 points to 20,895.66. The Dow fell 142.30 points to 44,342.19.

A Financial Times report suggesting the Trump administration wants minimum tariffs of 15-20% on EU goods initially pressured markets before buyers stepped in. Both the S&P 500 and Nasdaq have hit repeated record highs recently as traders show growing indifference to tariff headlines.

Can Trump Policy Headlines Still Move Markets?

“People are a little tired of trying to trade tariff headlines or deadlines, and people are more concerned with seeing the proof of this come to fruition through numbers,” said Greg Boutle, head of U.S. equity strategy at BNP Paribas.

This week served as a key test for how Trump’s economic policies are actually filtering through to corporate America.

Mixed economic data provided conflicting signals, including robust retail sales, rising consumer inflation, and flat producer prices for June. The University of Michigan Consumer Sentiment Index improved this month, though consumers remain concerned about future price pressures.

Earnings Season Delivers Mixed Results Despite Strong Beat Rate

Corporate earnings season kicked off with 81.4% of the 59 S&P 500 companies reporting so far beating Wall Street expectations, according to LSEG data. However, beating estimates hasn’t guaranteed stock gains this quarter.

Industrial giant 3M dropped 3.7% after warning tariff impacts will hit harder in the second half. Netflix fell 5.1% despite “Squid Game” success driving earnings beats and raised revenue guidance. American Express declined 2.3% even after topping profit forecasts.

Financial names showed strength with Charles Schwab advancing 2.9% on higher profits and Regions Financial jumping 6.1% after raising 2025 interest income forecasts.

Crypto Stocks Rally on Regulatory Framework Bill

Cryptocurrency-linked stocks gained after the House passed legislation developing a regulatory framework for digital assets. Robinhood Markets rose 4.1% and Coinbase Global advanced 2.2%.

Utilities led sector gains with a 1.7% advance to a record close. Energy lagged with a 1% decline, weighed down by SLB’s 3.9% drop on weak quarterly results and Exxon Mobil’s 3.5% fall after losing a legal battle over Chevron’s Hess acquisition.

Market Forecast: Earnings Quality Will Drive Next Leg Higher

For the week, the S&P 500 gained 0.59% and the Nasdaq rose 1.5%, while the Dow slipped 0.07%. With tariff fatigue setting in and strong earnings beat rates continuing, focus shifts to whether major companies can deliver blowout numbers to fuel the next meaningful market advance.

The underlying earnings momentum suggests further upside potential, provided corporate guidance remains constructive on the policy environment.