📰 Summary

Despite a series of new tariff threats from President Trump, U.S. stock markets remained steady, with the S&P 500 and Nasdaq finishing the week near record highs. Trump’s announcements included a 35% tariff on Canadian goods and a 50% tariff on Brazilian imports, with more countries such as Japan and South Korea facing levies unless trade deals are reached by Aug. 1.

Still, investors shrugged off the headlines, betting that most of these threats will not materialize or will be walked back. Analysts point to resilient inflation data, corporate earnings optimism, and strong consumer activity as buffers against potential shocks.

Delta Air Lines and Levi Strauss raised guidance, while bond yields climbed and Bitcoin hit a record high. However, some analysts warn that markets may be overly complacent about the long-term effects of the tariffs.

💹 Market Reaction

• S&P 500: -0.3% Friday, but hit all-time high Thursday

• Nasdaq: -0.2%, also near record

• Dow Jones: -0.6% Friday, -1% for the week

• 10Y Treasury Yield: rose to 4.42%

• Bitcoin: new all-time high at $118,861

• Copper: +9.1% weekly gain (highest since 2022)

🔍 Key Takeaways

• Markets remain calm despite aggressive tariff headlines

• Analysts expect Trump will de-escalate before economic damage occurs

• AI-driven large caps remain expensive; mid- and small-cap stocks could be undervalued

• Corporate earnings and inflation data next week will guide sentiment