U.S. stock markets closed mostly lower n Friday following trade and tariff related concerns. However, economic data were strong. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in positive zone. For the week as a whole, the S&P 500 and the Nasdaq Composite closed in positive zone while the Dow ended marginally lower.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.3% or 142.30 points to close at 44,342.19 after a choppy session. Notably, 19 components of the 30-stock index ended in negative territory and 11 finished in positive zone. At intraday high, the blue-chip index was up 229.50 points.
The major loser of the index was 3M Co. MMM. The stock price of the multi-sector conglomerate was down 3.7% after the company said that the impacts of tariffs will be felt in the second half. 3M currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 20,895.66, rising 10 points due to strong performance of technology bigwigs. This was a new record-high closing for the index. Moreover, in intraday trading, the tech-laden index posted an all-time high of 20,980.56.
The S&P 500 was down 0.57 points to finish at 6,296.79. In intraday trading, Wall Street’s most observed benchmark posted a new all-time high of 6,315.61. Six out of 11 broad sectors of the broad-market index ended in negative territory while five in positive zone.
The Utilities Select Sector SPDR (XLU) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 1.7% and 0.9%, respectively, On the other hand, the Energy Select Sector SPDR (XLE) and the Health Care Select Sector SPDR (XLV) fell 0.8% and 0.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.7% to 16.41.
Tariff Related Concerns
The Financial Times reported citing three genuine sources that the Trump administration is negotiating with the European Union (EU) to impose at least 15-20% tariffs in any deal. Earlier, President Donald Trump said that he will impose a 30% tariff on EU if it fails to clinch a deal with the United States before the Aug 1 dateline.
The EU is the single largest block that collectively exports more to the United States than any single country: Total U.S. goods imports from the EU topped $553 billion in 2022, according to the Office of the U.S. Trade Representative. Total U.S. imports from Mexico were approximately $454.8 billion in 2022, according to the U.S. Trade Representative.
Economic Data
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that housing start in June came in at 1.321 million units, beating the Zacks Consensus Estimate of 1.318 million units. The metric for May was revised upward to 1.263 million units from 1.256 million units reported earlier.
Moreover, building permits in June came in at 1.397 million units, exceeding the Zacks Consensus Estimate of 1.39 million units. The metric for May was revised marginally upward to 1.394 million units from 1.393 million units reported earlier.
The University of Michigan reported that the preliminary reading of consumer sentiment index for July came in at 61.8%, marking the highest level in five months and in line with the Zacks Consensus Estimate. The final reading in June was 60.7%.
The sub-index for current economic condition for July was 66.8% compared with 64.8% in June. The sub-index for consumer expectations for July was 58.6% compared with 58.1% in June. The 1-year inflation expectation dropped to 4.4% in July from 5% in June. Similarly, the long-term inflation expectation declined to 3.6% in July from 4% in June. Both readings were the lowest since February 2025.
Weekly Roundup
Last week was a mixed one for Wall Street. The S&P 500 and the Nasdaq Composite advanced 0.6% and 1.5%, respectively. Both indexes registered multiple closing and intraday highs last week. However, the Dow slipped 0.1%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
3M Company (MMM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
