Stocks Edge Higher at Open as Tech, Tariff Fears Loom Over Busy Week

U.S. stocks nudged higher at the opening bell Monday, as investors geared up for a high-stakes week of tech earnings, central bank commentary, and trade policy developments that could jolt market sentiment.

At the opening bell, the Dow Jones Industrial Average climbed 87.67 points, or 0.20%, to 44,449.90. The S&P 500 added 13.77 points, or 0.22%, to 6,310.56, while the Nasdaq Composite led the major indexes, rising 67.09 points, or 0.32%, to 20,962.70.

📺 Bob Elliott: Markets Are Delusional — And Credit Knows It

Crude oil futures slipped in early trading, with the September contract down 0.30% to $65.85 a barrel. Gold futures, by contrast, jumped 1.11% to $3,395.50, as investors sought safety ahead of potential market shocks from Washington and abroad.

Bessent Emphasizes Focus on U.S. Trade Outcomes

Appearing on CNBC, U.S. Treasury Secretary Bessent weighed in on several pressing geopolitical flashpoints, highlighting the administration’s priorities heading into a turbulent week. Responding to a Wall Street Journal report on the Federal Reserve, Bessent noted, at end of the day it’s Trump’s decision on Powell. The comment underscored ongoing speculation around Fed Chair Jerome Powell’s future and added intrigue ahead of Powell’s own remarks scheduled for Tuesday.

When asked about the weekend’s political shake-up in Japan—where the ruling coalition lost its upper house majority—Bessent struck a pragmatic tone stating our priorities are the best deals for US. He also commented on Europe’s slow progress in trade discussions, stating Europe got out of the blocks at slow pace on trade talks,” and emphasized that quality matters more than speed stressing that he was more concerned with high quality deals than getting them by August 1.

Japan Turmoil and Tariff Threats Stir Caution

Political instability in Japan loomed over markets Monday after the ruling coalition’s defeat in upper house elections. The outcome complicates U.S.-Japan trade negotiations and puts additional pressure on Prime Minister Shigeru Ishiba, who now governs without majorities in either chamber of parliament. With a potential 25% auto tariff from the U.S. on the table by August 1, markets are bracing for fresh volatility in the yen and Japanese bond yields.

Barclays analysts warned that proposed tax cuts by Japan’s opposition could steepen the yield curve further, complicating the Bank of Japan’s policy maneuvering. “If Ishiba has no concrete results by August, the voices calling for his resignation will likely get louder,” said Katsuyuki Yakushiji, professor emeritus at Toyo University.

Tech Earnings and Fed Remarks Set the Stage

All eyes are now on corporate earnings from Tesla, Alphabet, and Intel, which will begin rolling out midweek. These bellwether results are expected to offer crucial insights into consumer demand, innovation pipelines, and competitive dynamics. Analysts and investors alike will closely scrutinize Tesla’s energy diversification plans, Alphabet’s AI infrastructure spending, and Intel’s ability to reverse market share losses.

At the same time, Fed Chair Powell’s Tuesday morning speech will be a potential market-moving event although the blackout period prior is in place prior to next week's FOMC meeting. Powell's previous comments take on inflation, trade risk, and interest rate policy could quickly shift sentiment across rate-sensitive sectors like tech and financials.

Market Outlook: Bracing for Volatility

Veteran macro strategist Bob Elliott, CEO of Unlimited and former Bridgewater executive, warned in a recent interview that markets are underestimating tariff risks. He advised shifting allocations toward credit and gold while maintaining a cautious stance on equities. “The path of response is first pain, then policy that alleviates that pain,” Elliott said, highlighting the danger of waiting too long for policy support.

As the trading week begins, investors appear cautiously optimistic but increasingly aware of the growing number of variables—from Fed policy and earnings to foreign political risk and Trump’s upcoming AI policy announcement.

With volatility expected to rise, particularly around the August 1 tariff deadline, the market’s early gains could be tested by the week’s unfolding developments.