MarketBeat Week in Review: Tariff Concerns Jeopardize Dow and S&P 500 Gains, NVIDIA Leads AI Trade

Investors faced a volatile week with tariff concerns threatening the Dow and S&P 500's gains. The NASDAQ held strong, with NVIDIA Corp. becoming the first company to achieve a $4 trillion market cap. Next week, investors will focus on inflation data, retail sales data, and earnings season, with expectations for better-than-expected earnings. MarketBeat analysts highlighted stocks receiving upgrades, Micron Technology's gains, and stocks benefiting from the growing defense budget.

The US stock market experienced a volatile week as President Donald Trump's announcement of a 35% tariff on Canadian imports added fresh pressure to financial markets. Despite the tariff, the NASDAQ held strong, with NVIDIA Corp. becoming the first company to achieve a $4 trillion market cap. Investors are now focusing on upcoming economic data and earnings season.

Tariff Concerns and Market Reaction

Early Friday morning, US stock market futures dropped sharply after Trump announced the 35% tariff on Canadian imports, effective from August 1. Dow Jones futures fell 0.69%, S&P 500 futures dropped 0.67%, and Nasdaq 100 futures slipped 0.63% [1]. The tariff, aimed at curbing illegal fentanyl flow and addressing unfair trade practices, has rattled investors and added to existing trade tensions. Trump's decision follows weeks of escalating trade tensions and comes as markets were stabilizing.

NVIDIA's Historic Milestone

NVIDIA Corp. briefly became the first publicly traded company to reach a $4 trillion market cap this week, outpacing tech giants Apple and Microsoft. This milestone underscores Wall Street's accelerating confidence in artificial intelligence (AI) and the central role of high-performance semiconductors [2]. NVIDIA's rapid ascent, adding $1 trillion in market value in less than a year, reflects the growing importance of AI chipmakers in today's digital economy.

Upcoming Economic Data and Earnings Season

Investors will be closely watching next week's economic data and earnings season. Key events include the June CPI report, expected to show a 0.3% monthly rise in consumer prices, and Q2 earnings from major banks. MarketBeat analysts have highlighted stocks receiving upgrades, including Micron Technology, and companies benefiting from the growing defense budget.

Market Outlook

The US stock market is caught between resilient corporate earnings and the risk of broader economic fallout from escalating trade tensions. Trump's tariff escalation may continue to weigh on investor sentiment in the days ahead. Markets will turn their focus to the CPI report and Q2 earnings, where any surprise could either calm fears or deepen volatility. For now, investors are navigating carefully, watching every move from the White House.

References

[1] https://m.economictimes.com/news/international/us/us-stock-market-future-today-dow-sp-500-nasdaq-futures-drop-as-trump-slaps-35-tariff-on-canada-nvidia-hits-4t-amd-surges-coreweave-crashes/articleshow/122388349.cms

[2] https://finance.yahoo.com/news/nvidia-hits-historic-4-trillion-092900351.html