U.S. stock markets finished Monday with modest gains, as investors chose caution over action in response to the latest trade threats from President Donald Trump. With a busy week ahead — packed with economic data and the start of earnings season — markets held relatively steady.
Over the weekend, Trump escalated trade uncertainty by threatening to impose 30 percent tariffs on a broad range of imports from both the European Union and Mexico, effective August 1. His remarks left the door open for last-minute negotiations.
The Dow Jones Industrial Average climbed 88.14 points, or 0.20 percent, closing at 44,459.65. The S&P 500 rose by 8.81 points, or 0.14 percent, ending at 6,268.56. The Nasdaq Composite added 54.80 points, or 0.27 percent, to close at 20,640.33.
Trading volumes were relatively light, with 15.43 billion shares exchanged — below the 20-day average of 17.62 billion. This reflects a market waiting for clearer signals.
The Nasdaq reached a new all-time high — its seventh since late June. The S&P 500, just shy of its previous peak, has notched five records over the same period.
However, energy stocks took a hit. Following Trump's threats of tariffs on buyers of Russian oil, U.S. crude prices fell by 2.2 percent. That drop weighed on the energy sector, pulling it down by 1.2 percent — the steepest decline among the 11 sectors within the S&P 500.
Despite lingering trade tensions, most sectors finished Monday in the green. The biggest boost came from communication services, which rose by 0.7 percent. Netflix, expected to report earnings on Thursday, contributed significantly to the surge. Warner Bros. Discovery also helped drive momentum, thanks to a successful box-office debut of the latest Superman movie.
Shares of cryptocurrency-related companies rallied after Bitcoin crossed the 120,000 dollar mark for the first time. Coinbase saw its stock climb by 1.8 percent, while MicroStrategy jumped 3.8 percent, riding the wave of bullish sentiment in the digital asset space.
Meanwhile, Waters Corporation suffered a sharp drop of 13.8 percent after announcing a merger with Becton, Dickinson's Biosciences and Diagnostic Solutions division. The deal is valued at 17.5 billion dollars and sparked concerns about integration risks.
Asian stocks advanced on Tuesday, while the dollar remained firm. Investors are closely watching trade developments and awaiting key data on inflation and U.S. bank earnings later this week.
After a weekend marked by aggressive trade talk, President Trump signaled a willingness to negotiate over his proposed 30 percent tariffs targeting imports from Mexico and the European Union. In response, Japan is reportedly pushing for high-level talks with U.S. officials this Friday.
The MSCI index of Asia-Pacific shares excluding Japan gained 0.4 percent, while Japan's Nikkei index ticked up 0.2 percent. Japanese Prime Minister Shigeru Ishiba is seeking to meet U.S. Treasury Secretary Scott Bessent in Tokyo this week, ahead of the August 1 deadline for potential tariff implementation.
Domestically, Ishiba is also preparing for a crucial election on Sunday. Polls suggest his ruling coalition could lose control of the upper house to opposition forces calling for increased government spending. Japanese government bonds dropped sharply, with 10-year yields surging to 1.595 percent — their highest level since October 2008.
China's economy slowed in the second quarter, but the deceleration was less pronounced than expected — a sign that the country is weathering the impact of U.S. tariffs better than anticipated.
In a parallel development, Nvidia CEO Jensen Huang is preparing to visit China on Wednesday, as the company aims to restart sales of its H20 artificial intelligence chips, which are crucial for maintaining its competitive edge in the region.
The U.S. dollar remained relatively flat but hovered near a three-week high, trading at 147.62 yen. The euro recovered slightly after four consecutive days of decline, inching up by 0.1 percent to reach 1.1680 dollars.
U.S. crude prices slipped by 0.5 percent to 66.63 dollars per barrel. The drop came after President Donald Trump announced a fresh weapons package for Ukraine and warned of potential sanctions on buyers of Russian exports, should Moscow refuse to engage in peace talks within the next 50 days.
Gold prices rose by 0.6 percent to 3363.40 dollars per ounce, fueled by heightened geopolitical uncertainty. Silver also continued its upward trajectory, adding 0.3 percent to reach 38.25 dollars — its highest level since September 2011.
European stock futures showed moderate gains: Euro Stoxx 50 futures climbed by 0.3 percent, while Germany's DAX and the UK's FTSE both added 0.2 percent. In the U.S., Nasdaq futures advanced by 0.5 percent, signaling growing investor confidence in the tech sector.
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