To The Moon

Markets Reverse After Nearing All-Time Highs

After flirting with record levels earlier in the week, U.S. equities faltered Friday as tariff anxiety returned to the forefront. The catalyst: an escalation in White House trade rhetoric that caught investors off guard.

Index Friday Move Weekly Performance : $NASDAQ(.IXIC)$ -0.2%, ended 3-week winning streak. $S&P 500(.SPX)$ -0.3%, snapped 2-week streak. Dow Jones Industrial Average -0.6%, down for the week

Nearly 390 S&P 500 components closed in the red on Friday, led by broad-based selling across industrials, materials, and consumer discretionary.

Tariff Trouble: Markets Lose Their Patience

Tariffs

While markets had largely shrugged off tariff letters all week, new developments rattled investor confidence:

• A 35% tariff threat to Canada – a close ally – shook assumptions that only adversaries would face steep penalties.

• Trump’s late-Thursday comment that countries not yet targeted could face 15–20% tariffs, higher than the current 10% benchmark, added fuel to the fire.

Even though this isn’t a full-fledged panic like earlier this year, the tone shift marks growing unease about policy unpredictability, especially with the July 9 deadline approaching.

Next Up: Earnings and Inflation Take Center Stage

Markets may now pivot focus toward fundamentals. Q2 earnings season kicks off Monday and could be a turning point.

Key earnings next week:

• Monday: Fastenal (industrial bellwether)

• Tuesday: Citigroup, $JPMorgan Chase(JPM)$ , Wells Fargo

• Wednesday: Bank of America, Goldman Sachs, Morgan Stanley, Johnson & Johnson

• Thursday: U.S. Bancorp, GE Aerospace, Netflix

• Friday: American Express, Charles Schwab

50% of S&P 500 earnings reports next week come from Financials, setting the tone for market sentiment.

Key Macro Data on Deck

Markets also face a barrage of economic releases that could move the needle on Fed expectations:

• Tuesday Consumer Price Index (CPI) – June Top-tier inflation read.

• Wednesday Producer Price Index (PPI) Pricing pressures at wholesale level.

• Thursday Retail Sales Vital insight on consumer health.

• Friday Housing Starts Signal on housing strength & economic resilience

Why it matters: If inflation data stays soft, it could revive rate cut hopes heading into the Fed’s next meeting. But strong CPI or hot retail sales might delay action until September or later.

Bottom Line: Cautious, Not Panicked

• Tariffs re-enter the conversation and remind markets that geopolitical risk still matters.

• Q2 earnings and economic data will dictate near-term direction far more than political noise.

• With bulls and bears on edge, the next two weeks are pivotal for determining whether momentum resumes or cools.

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.