U.S. stocks closed higher on Monday, with the Nasdaq closing at a fresh record high, as President Donald Trump’s tariff threats kept investors on edge while they waited for key economic data and the start of the earnings season. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2% or 88.14 points, to close at 44,459.65 points.
The S&P 500 edged up 0.1%, or 8.81 points, to finish at 6,268.56 points. Communication services and financial stocks were the biggest gainers, while material stocks were the worst performers.
The Financials Select Sector SPDR (XLF) gained 0.8%, while the Communication Services Select Sector SPDR (XLC) added 1%. The Materials Select Sector SPDR (XLB) lost 0.6%. Seven of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq added 0.3%, or 54.80 points, to end at 20,640.33 points, hitting a fresh all-time closing high.
The fear-gauge CBOE Volatility Index (VIX) was up 4.88% to 17.20. A total of 15.43 billion shares were traded on Monday, lower than the last 20-session average of 17.62 billion.
Tariffs Tensions Keep Investors on Edge
Stocks ended mostly higher on Monday despite Trump’s tariff threats over the weekend. Trump announced on Saturday that he would impose 30% tariffs on the European Union and Mexico starting Aug 1.
Investors have been closely monitoring any developments on the tariff front after EU leaders hinted at negotiating with the Trump administration this month to reach a deal that would lower the duties.
The optimism kept losses in check on Monday as investors believe that the high tariffs will ultimately be negotiated down before Aug 1. Trump’s renewed tariff threats come just days ahead of the key inflation reading.
The consumer price index reading, which will be released on Tuesday, will give investors a clearer picture of how Trump’s tariffs, which are already in effect, are impacting the economy.
All Eyes on Earnings Season
The second-quarter earnings season, which kicks off later this week, and investors are eagerly waiting to assess the financial outlook of the major companies after the new tariffs go into effect.
Major banks, including JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Wells Fargo & Company (WFC) are scheduled to report their quarterly results on Tuesday. Also, Bank of America Corporation (BAC) and The Goldman Sachs Group, Inc (GS) will report their quarterly results later this week. Goldman Sachs has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
No major economic data was released on Monday.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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