The final results of the session indicate that the Dow Jones Industrial Average rose by 0.20%, the tech-heavy Nasdaq increased by 0.27%, and the broader S&P 500 gained 0.14%.
“The market, in general, downplayed” the new tariff threats from Donald Trump, emphasized Peter Cardillo of Spartan Capital Securities in a conversation with the French news agency AFP.
The U.S. President announced on Saturday the imposition of 30% tariffs on products imported into the United States from Mexico and the EU, effective from August 1.
Despite Trump’s threats of a possible increase in U.S. tariffs in case of retaliation, the European Commission proposed today to the 27 member states a list of possible retaliations worth 72 billion euros.
However, “the market is betting that these tariffs will not be applied at these levels until August 1,” explained Cardillo, attributing today’s index increases to this sentiment.
“Wall Street decided to ignore these threats” and is “focusing on a busy week of economic data,” observed José Torres of Interactive Brokers in a statement.
The American market is particularly awaiting the consumer inflation (CPI) and producer inflation (PPI) reports, scheduled for Tuesday and Wednesday, respectively.
“The impact of the tariffs and the brief increase in energy prices during the Iran-Israel conflict should have pushed consumer and producer prices up in June,” speculated Bill Adams of Comerica Bank in a statement.
These figures may provide insights into the future path of the U.S. Federal Reserve (Fed).
The vast majority of investors believe that the U.S. central bank will maintain its current interest rates at its next meeting on July 30, according to CME’s FedWatch tool.
In the bond market, the yield on the 10-year U.S. Treasury note rose to 4.43% around 21:25 today (Lisbon time), compared to 4.41% at Friday’s close.
In the corporate market, “earnings season kicks off tomorrow [Tuesday]” and, as such, the session “could be very interesting and volatile,” highlighted Cardillo.
The banking sector will be in focus on Tuesday, with investors following the results of Wells Fargo (+1.07% at today’s close), JP Morgan (+0.64%), and Citigroup (+0.89%).
Shares linked to the cryptocurrency sector were boosted by Bitcoin’s new all-time high, including Coinbase (+1.80%, to $394.01) and Robinhood (+1.65%, to $99.96).
The alcoholic beverage distributor Constellation Brands fell by 4.42% to $164.58, as investors were concerned about the impact of Donald Trump’s tariff threats on imports of Corona and Modelo beers from Mexico.
