The S&P 500 Index ($SPX) is down 0.57%, the Dow Jones Index ($DOWI) has fallen 0.65%, and the Nasdaq 100 Index ($IUXX) is down 0.51% as of today. September E-mini S&P futures (ESU25) decreased by 0.67%, while September E-mini Nasdaq futures (NQU25) are down 0.57%. These declines come amid President Trump’s increased threats to impose higher tariffs, particularly a 35% tariff on some Canadian goods effective August 1, up from 25%. The anticipated tariffs are adding to concerns about inflation and potential impacts on the Federal Reserve’s interest rate policies.
Today’s market turbulence is compounded by rising bond yields, with the 10-year T-note yield up 5 basis points to 4.40%. The consensus for Q2 earnings growth among S&P 500 companies is projected to be just 2.8% year-over-year, reflecting the smallest increase in two years, as earnings season begins next week. Additionally, federal funds futures show only a 7% probability for a 25 basis point rate cut at the upcoming Federal Open Market Committee meeting on July 29-30.
Across overseas markets, the Euro Stoxx 50 index is down 0.91%, while China’s Shanghai Composite rose slightly to a 9-month high. In contrast, Japan’s Nikkei 225 fell to a one-week low, down 0.19%. Meanwhile, UK manufacturing production experienced a 1% month-over-month decline, the most significant drop in 10 months, underscoring ongoing economic pressures.
