The Dow Jones Industrial Average (DJIA) slipped on Friday following reports that President Donald Trump is pushing for higher tariffs on the European Union (EU).
The Dow dropped 142.30 points, or 0.32%, to close at 44,342.19. The S&P 500 edged down 0.01% to 6,296.79 after briefly touching a record high during the session. The Nasdaq Composite rose 0.05%, ending the day at 20,895.66.
According to the Financial Times, Trump is seeking a minimum tariff of 15% to 20% as part of ongoing trade discussions with the EU. The bloc is working to strike a deal before Trump’s August 1 deadline, when he has threatened to impose 30% tariffs on European imports.
Investors also assessed a batch of fresh earnings results and economic data.
Despite Friday’s muted moves, the S&P 500 and Nasdaq each posted a weekly gain, up 0.6% and 1.5%, respectively. The Dow finished the week slightly lower.
This week, investor attention will be firmly on the second-quarter earnings season, which kicked off on a strong footing last week.
In addition to corporate results, markets will be closely watching developments around the Federal Reserve.
President Donald Trump has renewed pressure on Fed Chair Jerome Powell to step down as he continues to push for interest rate cuts. The Fed is set to hold its next policy meeting on July 29-30.
On the data front, several key economic indicators are due in the coming days, including updates on manufacturing and services activity, weekly jobless claims, and changes in existing home sales.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Big earnings week ahead: Google, Tesla, Intel to report U.S. industrials have been the standout performers in a volatile year for equities, but their resilience will be put to the test as earnings season gathers steam.
So far in 2025, the S&P 500 industrials sector—spanning aerospace, machinery, transportation, and building products—has climbed 15%, more than twice the broader index’s gain and the best showing among the 11 major sectors.
Aerospace and defense names have played a key role, with the sub-sector up 30% year-to-date amid rising geopolitical tensions and increased defense spending in Europe.
Key players like Rtx Corp (NYSE:RTX), Lockheed Martin (NYSE:LMT), and General Dynamics (NYSE:GD) are due to report results this week.
But the biggest spotlight this week will be on the Magnificent 7 tech giants Alphabet (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA), with both set to report earnings on Wednesday after the market close.
General Motors (NYSE:GM), Coca-Cola (NYSE:KO), Intel (NASDAQ:INTC), and IBM (NYSE:IBM) will also release results this week.
Q2 earnings have started on a strong note. Of the 59 S&P 500 companies that have reported so far, 61% have exceeded estimates by more than one standard deviation, well above the historical average of 48%.
Still, expectations have been tempered. JPMorgan notes that Q2 earnings growth for the S&P 500 is now projected at 3.5% year-on-year, down from 11% at the beginning of 2025.
For the Magnificent 7, Q2 EPS growth is expected at 14%, down from the 17% anticipated last quarter, while the rest of the index is projected to grow just 1%, the bank said.
