Earnings Optimism Likely to Support Market Rally Despite New Tariff Jitters

Barry Adams
14 Jul, 2025
New York City

Stock market indexes in New York headed lower following the threats of new tariffs over the weekend. 

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% as the U.S. president threatened additional tariffs of 30% on Mexico and the European Union. 

Despite the ongoing negotiations, Trump's threats raise the question about the reliability of an agreement with the U.S., because new tariff threats include nations that have signed a trade agreement. 

The erratic and unpredictable Trump administration's approach to international trade has left many world leaders wondering about the value of an agreement with the U.S. 

Trump, as in the past, could repudiate any future trade deal at any time, rendering an agreement worthless.

This week investors in the U.S. are looking forward to the release of consumer inflation reports, and overall inflation is expected to rise to 2.6%, and core inflation is likely to rebound to 3%.

On the earnings front, banks are scheduled to kick off the earnings season, including results from JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs, and American Express.

 

U.S. Stock Movers

Kenvue Inc. rose 4.8% to $22.37, and the company said its chief executive, Thibaut Mongon, has resigned. 

The company's board is looking to simplify its diverse product portfolio and consider its strategic alternatives. 

MicroStrategy Inc. jumped 2.9% to $446.70 after Bitcoin advanced 2.2% to $121,818, trading at a new record high. 

 Boeing Company jumped 1.4% to $229.89 after the preliminary investigation revealed that malfunction of the fuel switch may have played a key role in Air India's fatal crash last month. 

The preliminary investigation rules out the airplane's design or manufacturing-related issues.