New York, July 14: The S&P 500 edged higher on Monday, buoyed by investor optimism that newly announced U.S. tariffs may be scaled back through negotiation, even as President Donald Trump threatened further trade action over the weekend.
The S&P 500 rose 0.14% to close at 6,268.56, while the Nasdaq Composite gained 0.27% to 20,640.33. The Dow Jones Industrial Average climbed 88.14 points, or 0.20%, to end at 44,459.65.
Markets showed resilience after Trump said on Saturday that the United States would impose 30% tariffs on the European Union and Mexico starting August 1. Leaders from both regions signaled their intention to continue talks with Washington in an effort to lower the proposed duties.
“Markets are betting that diplomacy will prevail before the August deadline,” said Glen Smith, chief investment officer at GDS Wealth Management. “The bigger question is whether strong earnings can overshadow the tariff risks still looming in the background.”
Investors are now turning attention to the second-quarter earnings season, which begins in earnest this week. JPMorgan Chase and other major banks are set to report results on Tuesday, with analysts forecasting robust performance amid strong consumer and business spending.
Tensions between the Trump administration and the Federal Reserve also resurfaced over the weekend. National Economic Council Director Kevin Hassett told ABC News on Sunday that Trump could remove Fed Chair Jerome Powell “if there’s cause.” The administration is reportedly scrutinizing renovation costs at the Fed’s Washington, D.C. headquarters, while Trump has continued to criticize Powell for keeping interest rates elevated.
In the cryptocurrency market, bitcoin hit a new all-time high above $123,000, before retreating to $120,437.06. The rally, driven by strong inflows into bitcoin exchange-traded funds, lifted MicroStrategy shares by nearly 3% on Monday.
TD Cowen analyst Lance Vitanza raised his price target on MicroStrategy to $680 from $590, citing the company’s aggressive bitcoin accumulation strategy and low capital costs. MicroStrategy shares are now up approximately 54% year-to-date.
Despite a negative week for equities, all three major indexes remain near record highs, reflecting investor confidence in corporate resilience and economic momentum.
