Overview
The stock market reacted to the news of potential new tariffs on the European Union and comments from Federal Reserve Governor Christopher Waller emphasizing the need for interest rate cuts. Waller highlighted improving economic data, stating that there is no imminent risk of rising inflation expectations, which supported a decrease in treasury yields. He argued for a rate cut at the end of the month citing employment data nearing its peak.
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Nasdaq Composite
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S&P 500
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Dow Jones Industrial Average
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1 South Korean won equals
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Major News Story
- The Trump administration's plan to impose new tariffs on the European Union negatively impacted the market but saw some recovery.
- Christopher Waller from the Federal Reserve emphasized the need for interest rate cuts.
- The July consumer sentiment index reached its highest point in five months.
- June retail sales rebounded, providing some relief from concerns about consumer spending.
- The S&P 500 index, after reaching an all-time high, saw minor declines.
- President Trump is preparing to implement additional tariffs targeting specific industries.
Tomorrow's Economic Indicators
| Time (EST) | Description |
|---|---|
| 11:00 PM | U.S. Leading Economic Index Release |
General Opinion
Overall, economic data remains positive, but tariff issues could challenge the market. With ongoing earnings reports, the period may be a significant test for investors. According to Daniel Skelley from Morgan Stanley, while tariff-related disruptions persist, the market appears to be slowly adapting to these changes.
