Today, the U.S. stock market experienced mixed signals amidst various challenges, including sudden tensions between the U.S. and Canada over trade. Despite these obstacles, the S&P 500 reached an all-time high, mainly driven by technology giants like NVIDIA and Google. President Trump announced a halt in negotiations with Canada regarding their detailed services as retaliation, alongside plans to impose new tariffs next week. Initially, this news led to a market rally, but subsequently, stocks began to stabilize. Earlier, Trump mentioned having reached agreements with five countries, including China and the UK, indicating the potential for either advancing or extending tariff implementations by July 9. Furthermore, he previously suspended certain tariffs for three months in April. Meanwhile, economic indicators showed a surge in consumer spending to a four-month high, with noticeable improvements in inflation expectations. The PCE inflation measure slightly exceeded forecasts, although overall inflationary pressures remained contained. Market sentiment anticipates at least two interest rate hikes before the year's end, with expectations rising for a third hike contingent on next week's employment report. UBS's David Laff stated that the U.S. stock market is recovering from tariff shocks, suggesting that most related stocks can absorb these tariff burdens, deeming the recent market rebound justifiable. Redeker from Tora pointed out that the latest PCE indicators show that inflation remains under control, indicating today's inflation report is unlikely to shock the market significantly, although it could dampen hopes for a July rate hike.
Overview
Today's market highlights indicate resilience in the face of geopolitical and economic challenges, with a significant focus on consumer spending and inflation data.
Major News
- The S&P 500 achieved a new record high despite trade tensions with Canada.
- President Trump announced a halt in U.S.-Canada negotiations due to retaliatory tariffs.
- Advancements in consumer spending and inflation metrics suggest economic growth.
Upcoming Economic Indicators
| Date | Time (EST) | Indicator |
|---|---|---|
| June 30, 2025 | 10:45 AM | U.S. Consumer Confidence Index |
| July 3, 2025 | 8:30 AM | U.S. Unemployment Rate |
| July 5, 2025 | 8:30 AM | U.S. Non-Farm Payrolls Report |
| NasDaq | S&P 500 |
| Dow Jones | Won/Dollar |
Overall, today’s market performance reflects a complex interplay of economic indicators and geopolitical events. Anticipation for upcoming economic data will likely influence market trends further as investors digest the implications of potential tariff changes and gauge consumer sentiment. As the situation evolves, traders should remain vigilant, particularly with the upcoming release of key employment figures next week that could sway market expectations for interest rate adjustments.
