Stocks advanced for the week, with the S&P 500 and Nasdaq Composite setting new record highs for the second consecutive week. Gains were supported by the announcement of several trade agreements. On the earnings front, Alphabet beat estimates, and its upbeat commentary on artificial intelligence (AI) boosted broader sentiment in the AI space. Meanwhile, Tesla’s earnings disappointed, dragging its shares down 4.12% over the week.
Market sentiment was supported by cautious optimism surrounding the prospect of an EU-U.S. trade deal. However, the European Union signaled potential counter-tariffs if an agreement is not reached. The European Central Bank (ECB) kept interest rates unchanged, though accompanying statements were interpreted as slightly hawkish by investors.
In Asia, Japanese equities posted solid gains, helped by the announcement of a new trade agreement under which most Japanese exports to the U.S. would face a 15% tariff. Meanwhile, Chinese markets rose amid growing expectations that the current tariff truce with the U.S. would be extended ahead of upcoming trade negotiations
Trade uncertainty continues to ease as the U.S. pushes forward with a series of agreements ahead of its August 1 deadline. Last week's deal with Japan marked a significant step, reducing proposed tariffs from 25% to 15% and including a notable $550 billion U.S. investment pledge. The agreement is expected to serve as a blueprint for negotiations with other key partners. So far, trade deals have been finalized with the U.K., Vietnam, Indonesia, Japan, and partially with China. Meanwhile, discussions remain ongoing with the EU, Canada, South Korea, and India.
Index |
Current Price |
1 Week Return % |
S&P 500 |
6,388.64 |
1.46% |
DJIA |
44,901.92 |
1.26% |
Nasdaq |
21,108.32 |
1.02% |
FTSE 100 |
9,120.31 |
1.43% |
Nikkei 225 |
41,456.23 |
4.11% |
Shanghai Composite |
3,593.66 |
1.67% |
Sensex |
81,463.09 |
-0.36% |
ADX Index |
10,300.81 |
0.38% |
Gold |
3,335.60 |
-0.58% |
Brent Oil (Brent) |
68.44 |
-1.21% |
Markets remained close to record highs, buoyed by resilient investor confidence, stronger-than-expected earnings growth, and supportive signals from monetary policy. Although short-term volatility may persist due to ongoing trade tensions and evolving tax policies, we see any market pullbacks as opportunities to strategically rebalance portfolios. We continue to favor U.S. large- and mid-cap stocks, recommend maintaining diversified exposure to international markets, and see value in both short- and long-term Treasuries as the Fed hints at a gradual approach to future rate cuts.
Let our investment specialists help you tailor your portfolio for what’s ahead.
Disclaimer
This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.
