The S&P 500 Index is up +0.25%, the Dow Jones by +0.19%, and the Nasdaq 100 has reached a new all-time high, up +0.28%. Additionally, September E-mini S&P futures are up +0.22% and E-mini Nasdaq futures by +0.23%. This increase is attributed to gains in technology stocks, particularly the “Magnificent Seven,” amid a backdrop of slightly lower bond yields, with the 10-year T-note yield down -2 basis points to 4.38%.
However, market momentum is constrained as President Trump insists on continuing an aggressive tariff policy, announcing a 50% tariff on imported copper and a potential 200% tariff on drugs if companies don’t relocate to the U.S. Despite signaling that the U.S. is close to a trade deal with India, a 10% tariff on Indian goods will still be implemented. In the bond market, September 10-year T-notes are up +8 ticks, but concerns about inflation from tariffs limit gains.
Key upcoming events include the release of the June FOMC meeting minutes and a US labor market report on initial unemployment claims. Secretary of State, the U.S. job market shows mixed signals as MBA mortgage applications rose +9.4%, while wholesale trade sales unexpectedly fell -0.3%, revealing the complexities of the current economic landscape.
