Tariffs Woes and Bank Earnings Loom, US Equity Indexes Retreat

Friday, Jul 11, 2025 5:23 pm ET1min read

US equity indexes declined this week due to escalating tariff tensions. The S&P 500 posted a slight weekly decline amid latest tariff threats, while the Dow Jones Industrial Average and Nasdaq Composite also fell. The market retreat comes ahead of bank earnings, with investors monitoring tariff updates and concerns over valuation.

US equity indexes experienced a week of mixed performance, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all posting declines. The market retreat was largely attributed to escalating tariff tensions and uncertainty surrounding President Trump's latest trade threats.

The S&P 500 closed 0.3% lower on Friday, marking a weekly decline despite setting a record high the previous day [1]. The Dow Jones Industrial Average dropped 0.6%, while the Nasdaq composite gave up 0.2% after fluctuating between small gains and losses throughout the day [1]. The tech-heavy index was coming off its own all-time high on Thursday.

President Trump's letter threatening a 35% tariff on Canadian goods and the extension of the tariff deadline to August 1 added to the market's unease [1]. The administration's aggressive tariff strategy has been a source of concern for investors, with some market watchers expressing skepticism about the market's muted response to the latest threats.

Despite the uncertainty around tariffs, the market has largely accepted a "base case" of 10% tariffs across the board [1]. The market's focus has shifted towards upcoming corporate earnings reports, with several companies, including Levi Strauss and Delta Air Lines, delivering positive results and raising their outlooks despite the tariff backdrop [1].

The market retreat comes ahead of bank earnings, with investors closely monitoring tariff updates and concerns over valuation. The week's developments highlight the ongoing tension between the administration's trade policies and the broader market's resilience.

References:
[1] https://finance.yahoo.com/news/asian-shares-mixed-wall-street-044502105.html
[2] https://finance.yahoo.com/news/us-equity-indexes-decline-week-204112964.html
[3] https://finance.yahoo.com/news/trump-tariff-fatigue-stock-market-euphoria-and-netflix-sell-off-opening-bid-takeaways-145858120.html

Tariffs Woes and Bank Earnings Loom, US Equity Indexes Retreat

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