Tech Earnings Boost Markets Despite 35% U.S. Tariff Threat

This week, global financial markets experienced a tug-of-war between fresh tariff threats and a surprisingly resilient risk appetite. While major U.S. indices flirted with new highs before backing off on Friday due to talk of a 35% U.S. tariff on Canada and Brazil, Asia’s major bourses and most European indices logged cautious gains. This was driven by solid tech earnings, which helped offset trade anxieties.

Investor sentiment remained bifurcated, with a risk-on attitude toward growth assets such as Big Tech and Bitcoin, but a risk-off stance in safe-havens like the dollar and Treasuries. This shift was particularly notable after Washington’s hawkish tone on both trade and rates.

Across asset classes, oil rallied on an IEA warning that supply may be tighter than it looks, gold clung to support despite a firmer greenback, and Bitcoin stormed to yet another record above $118,000 on blockbuster ETF inflows. The result was that broader markets ended the week mixed, but volatility crept higher as investors weighed geopolitics, policy path, and the prospect of mid-summer liquidity thinning out.

Equity markets reacted to tariff news and tech earnings, with key indices such as the S&P 500 seeing record highs early in the week before a slight dip. The Nikkei and FTSE 100 generally climbed, driven by tech strength and supportive earnings across sectors. The Nifty 50 tracked broader Asia, posting moderate weekly gains. Big Tech led the charge, boosting U.S. equities, while the Energy sector lagged due to falling earnings year over year.

U.S. equities ended the week at or near all-time highs amid easing inflation concerns and upbeat earnings. Europe showed modest gains with caution ahead of ECB signals, while Asia, led by Japan and India, followed the global risk-on tone. Tariff concerns, specifically a U.S. 35% tariff on Canada, briefly rattled markets, but solid tech earnings and expected S&P 500 EPS growth fueled investor confidence.

In the commodities market, crude oil surged approximately 3% over the week, driven by the IEA’s tighter supply outlook and geopolitical risks. Gold consolidated around $3,269/oz after recent highs, while silver rallied to approximately $36.50, its highest in 13 years. Platinum jumped approximately 10% to approximately $1,415, an 11-year peak. Tin, nickel, and zinc showed mixed trends but were broadly supported by bullish global demand. The OPEC+ outlook plus summer demand tightening in oil and inflation-driven safe-haven flows and U.S. dollar weakness buoyed metals.

In the currency market, the DXY index rose to approximately 97.8 by July 11, climbing above 97.6 following U.S. tariff threats. EUR/USD slipped below 1.1700, while GBP and JPY weakened amid risk-off sentiment. INR remained stable, mildly pressured by dollar strength. Flare-ups in U.S.–Canada tariff talk drove haven demand, and a risk-off tone from global trade uncertainty gave the dollar a boost.

In the bond market, the 10-year Treasury yield climbed from approximately 4.40% to 4.43% by July 11. The 2-year yield was at approximately 3.90%, and the 30-year yield was near 4.96%. Central bank commentary indicated that the Fed maintains 50 basis point projected cuts in 2025, but the outlook for a July cut is weak. Despite cooling data, yields edged up amid tariff worries and fiscal uncertainty.

In the crypto market, Bitcoin hit new record highs up to approximately $118,000, backed by strong ETF inflows and a short squeeze. Ethereum gained over 16% in five days, supported by growing institutional exposure. Positive sentiment ahead of U.S. “Crypto Week” (July 14–18) indicated that institutional momentum and regulatory clarity are fueling crypto strength, with an altseason perhaps underway.

Looking at the broader picture, markets appear to be drifting rather than decisively trending, with tariff uncertainty anchoring sentiment. Tech and crypto showed unambiguous strength, yet rising bond yields and a surging dollar signal that inflation-inflamed policy risks have not vanished. Energy equities failed to capture crude’s three-percent weekly pop, highlighting rotation fatigue, while defensives and small-caps lagged, suggesting investors are still clustering in a few perceived safe stories.

Heading into next week, all eyes will be on the U.S. CPI release and the Fed’s July minutes, followed closely by China’s Q2 GDP print and the start of “Crypto Week” on Capitol Hill. A soft inflation read could reignite the bid for duration and equities alike; a hot print would likely deepen the rate-sensitivity seen in Treasuries above 4.4%. Meanwhile, any concrete progress on crypto legislation could either validate Bitcoin’s institutional thesis or spark a classic “sell the news” pullback after its vertical run.

If trade rhetoric escalates but hard data stay benign, we may witness a rare pairing, equities grinding higher alongside the dollar and long yields until one of those “safe” signals blinks. For nimble investors, that could be a cue to hedge high-beta winners and accumulate quality cyclicals poised to benefit from a late-summer rerating.