Wall Street ends higher, dollar firms ahead of a big week for market risk
"There's increasing confidence that the economy won't be derailed by tariffs," said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta. "In the meantime, companies are reporting good earnings, the economic numbers are coming in within the range and people want to own stocks. They don't want to miss out."
All three indexes closed in positive territory and notched weekly gains. The S&P 500 and the Nasdaq logged fresh record closing highs and the blue-chip Dow ended 0.25% shy of its all-time closing level reached on December 24, 2024.
Gold lost some shine, pressured by the dollar as healthy risk appetites lured investors away from the safe-haven metal.
With Trump's negotiating deadline just a week away, the U.S. and its trading partners are scrambling to reach trade agreements, with European negotiators heartened by the deal with Japan announced on Tuesday.
Intel's shares INTC.O, opens new tab dropped 8.5% after the chipmaker forecast steeper-than-expected quarterly losses and said it had halted or scrapped new factory projects in the U.S. and Europe.
More than a third of the companies in the S&P 500 have posted results, 80% of which have beaten estimates, according to LSEG data.
Analysts now expect year-on-year second-quarter earnings growth of 7.7%, compared with the 5.8% estimate as of July 1.
Four members of the Magnificent 7 group of Artificial Intelligence-related megacap stocks - Amazon (AMZN.O), opens new tab, Apple (AAPL.O), opens new tab, Meta (META.O), opens new tab and Microsoft (MSFT.O), opens new tab are on next week's earnings docket, and market participants will scrutinize the companies' conference calls for signs that AI expenditures are beginning to pay off and whether tariff-related uncertainties continue to weigh on forward guidance.
U.S. economic data released on Friday showed an unexpected decline in new orders for core capital goods, as companies hold back on big ticket purchases amid the fog of ongoing trade talks.
The Fed is expected to convene next week for a two-day monetary policy meeting, which is expected to culminate in a decision to let its federal funds target rate stand in the 4.25% to 4.50% range. The meeting comes at a moment in which Fed Chair Jerome Powell is facing criticism from Trump for not cutting rates.
"The Fed is going to do what it's going to do and Powell is going to stay in his job," Martin added. "The economy is doing great, so they really don't need to lower short-term interest rates."
"Inflation is still a question, so they're better off not lowering rates if they don't have to," Martin said.
The Dow Jones Industrial Average (.DJI), opens new tab rose 208.01 points, or 0.47%, to 44,901.92, the S&P 500 (.SPX), opens new tab rose 25.30 points, or 0.40%, to 6,388.65 and the Nasdaq Composite (.IXIC), opens new tab rose 50.36 points, or 0.24%, to 21,108.32.
European shares settled lower as market participants parsed mixed corporate earnings and awaited developments in the U.S.-EU trade negotiations.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), opens new tab rose 0.47 points, or 0.05%, to 941.82.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), opens new tab rose 0.01 points, or 0.00%, to 941.36.
The pan-European STOXX 600 (.STOXX), opens new tab index fell 0.29%, while Europe's broad FTSEurofirst 300 index (.FTEU3), opens new tab fell 5.79 points, or 0.27%
Emerging market stocks (.MSCIEF), opens new tab fell 10.29 points, or 0.81%, to 1,257.00. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab closed lower by 0.93%, to 661.17, while Japan's Nikkei (.N225), opens new tab fell 370.11 points, or 0.88%, to 41,456.23.
The yield on benchmark U.S. 10-year notes fell 2.4 basis points to 4.384%, from 4.408% late on Thursday.
The U.S. dollar gained strength but remained on course for its biggest drop in a month as investors focused on economic data, tariff negotiations and central bank meetings on the calendar for next week.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.23% to 97.68, with the euro down 0.11% at $1.1741.
Against the Japanese yen , the dollar strengthened 0.44% to 147.65.
In cryptocurrencies, bitcoin fell 1.66% to $116,805.28. Ethereum declined 2.52% to $3,645.63.
U.S. crude fell 1.32% to $65.16 per barrel, while Brent fell to $68.44 per barrel, down 1.07% on the day.
Gold prices dropped in opposition to the firming dollar, amid signs of progress in U.S.-EU trade talks.
Spot gold fell 0.9% to $3,337.66 an ounce. U.S. gold futures fell 1.24% to $3,329.10 an ounce.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
14 minutes ago
- The Guardian
Trump news at a glance: president hails US-EU trade deal as House speaker weighs in on Epstein controversy
Donald Trump has hailed what he called 'a powerful deal' on tariffs with the European Union to avert a damaging transatlantic trade war after months of tough negotiations between the two sides. 'It solves a lot of stuff and was a great decision,' the US president said of the agreement after meeting the European Commission chief, Ursula von der Leyen, in Scotland. The 'important' partnership involved the EU agreeing to spend tens of billions of dollars more on US energy products, Trump said. US House speaker Mike Johnson, meanwhile, said he would have 'great pause' about granting a pardon to Ghislaine Maxwell while another House Republican said it should be considered as part of an effort to obtain more information about Jeffrey Epstein's crimes. Here's more on this and the day's other key Trump administration stories: Donald Trump has announced a tariff deal with the European Union to end months of difficult negotiations between Washington and Brussels after meeting the European Commission chief, Ursula von der Leyen, at his Turnberry golf resort in Scotland. 'This is really the biggest trading partnership in the world so we should give it a shot,' the president said before the private meeting started. Von der Leyen described it as 'a huge deal' that would bring 'stability' and 'predictability' to both sides. Read the full story US House speaker Mike Johnson said he would have 'great pause' about granting a pardon or commutation to Ghislaine Maxwell while Kentucky Republican representative Thomas Massie said a pardon should be on the table for the jailed Epstein confidante if she were to give helpful information around the Epstein case. On Sunday – after deputy attorney general Todd Blanche met with Maxwell last week –Johnson was asked on NBC about the possibility of a pardon and said: 'I think she should have a life sentence at least … That she orchestrated it and was a big part of it, at least under the criminal sanction, I think is an unforgivable thing. So again, not my decision, but I have great pause about that, as any reasonable person would.' Read the full story A top US medical body has expressed 'deep concern' to Robert F Kennedy Jr over news reports that the health secretary plans to overhaul a panel that determines which preventive health measures, including cancer screenings, should be covered by insurance companies. The letter from the the American Medical Association comes after the Wall Street Journal reported on Friday that Kennedy plans to overhaul the 40-year old US preventive services task force because he regards it as too 'woke', according to sources. Read the full story Thai and Cambodian leaders will meet on Monday for talks to end hostilities, Thailand said, after pressure from Donald Trump to end a deadly border dispute. UK prime minster Keir Starmer will recall his cabinet from their summer break for an emergency meeting on the Gaza crisis this week as cross-party MPs warned his talks with Donald Trump provided a critical juncture in helping to resolve the conflict. Catching up? Here's what happened on 26 July.
Reuters
14 minutes ago
- Reuters
Indian rupee, bond markets cautious in week dominated by Fed, tariffs
MUMBAI, July 28 (Reuters) - The Indian rupee and government bonds will react to a host of cues this week, including a U.S. Federal Reserve policy decision and the August 1 reciprocal tariff deadline, which is likely to keep traders cautious. The rupee closed at 86.5150 against the U.S. dollar on Friday, down 0.4% on the week, as foreign portfolio outflows and uncertainty over a U.S.-India trade agreement kept sentiment tepid. While the Fed is widely expected to keep rates unchanged on Wednesday, investors will pay close attention to commentary from Fed Chair Powell to gauge the outlook for U.S. policy rates. "As long as the jobs picture holds up, firmer inflation may well delay the restart of the Fed easing cycle and provide the dollar with a lift this summer," ING said in a note. Later in the week, data on the U.S. labour market will be in focus alongside an inflation print to gauge how tariffs are affecting the world's largest economy. Meanwhile, the deadline to strike trade deals with the U.S. elapses on August 1. Over the weekend, the United States and the European Union announced a deal, which will result in a 15% tariff on EU goods, half what Trump had threatened to impose from August 1. Japan and the European Union have reached agreements with U.S., alongside others such as Indonesia and Vietnam, even as India's negotiations have appeared to run into roadblocks over key sectors such as dairy and agriculture. Traders reckon that the rupee will continue to hold a slightly bearish bias and hover in a 86.30-87 range in the near term. Heightened risk of "news-led price action" should prompt speculators to keep positions small with tight stop-losses, a trader at a foreign bank said. Meanwhile, India's 10-year benchmark 6.33% 2035 bond yield , which settled last week at 6.3505%, is expected to move in a range of 6.31% to 6.38%. Apart from the Fed guidance, focus will also remain on expectations about any potential rate cut in the RBI's upcoming policy decision, due on August 6. A plunge in India's retail inflation to a more-than-six-year low in June, along with expectations that it will slip to a record low in July, has led to increased talks of a rate cut, with some even expecting action next week. The central bank slashed its key interest rate by a steeper-than-expected 50 bps last month and changed its policy stance to "neutral" from "accommodative", which had fueled speculation that the rate cut cycle may be over. Banks will also gauge the liquidity situation and movement in overnight rates after a volatile last week, which saw rates rising beyond the Marginal Standing Facility rate. Foreign investors have been on the buying side, with net purchases of over 100 billion rupees in the last five weeks, as bets of at least one more rate cut have risen. India's fundamental story remains intact. Inflation is under control and fiscal health is in check, and India is one of the large benchmark weights within the JPMorgan emerging market debt index, said Jean‑Charles Sambor, head of emerging markets debt at TT International Asset Management. "We think that fundamentals will remain very attractive for foreign investors." KEY EVENTS: India ** June fiscal deficit - July 28, Monday (3:30 p.m. IST) ** June industrial output - July 28, Monday (4:00 p.m. IST)(Reuters poll - 2.4%) ** July HSBC manufacturing PMI - August 1, Friday (10:30 a.m.) U.S. ** July consumer confidence - July 29, Tuesday (7:30 p.m. IST) ** April-June GDP advance - July 30, Wednesday (6:00 p.m. IST) ** Federal Reserve monetary policy decision - July 30, Wednesday (11:30 p.m. IST)(Reuters poll - rates unchanged) ** Initial weekly jobless claims for week to July 21 - July 31, Thursday (6:00 p.m. IST) ** June personal consumption expenditure index, core PCE index - July 31, Thursday (6:00 p.m. IST) ** July non-farm payrolls and unemployment rate - August 1, Friday (6:00 p.m. IST) ** July S&P Global manufacturing PMI final - August 1, Friday (7:15 p.m. IST) ** July ISM manufacturing PMI - August 1, Friday (7:30 p.m. IST) ** July U Mich sentiment final - August 1, Friday (7:30 p.m. IST)
Reuters
44 minutes ago
- Reuters
Oil rises as US-EU deal lifts trade optimism
SINGAPORE, July 28 (Reuters) - Oil prices rose on Monday after the U.S. reached a trade deal with the European Union and may extend a tariff pause with China, reducing concerns that potentially higher levies would limit economic activity and impact fuel demand. Brent crude futures inched up 22 cents, or 0.32%, to $68.66 a barrel by 0035 GMT while U.S. West Texas Intermediate crude was at $65.38 a barrel, up 22 cents, or 0.34%. The U.S.-European Union trade deal and a possible extension in U.S.-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said. The United States and the European Union struck a framework trade agreement on Sunday that will impose a 15% import tariff on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also, senior U.S. and Chinese negotiators will meet in Stockholm on Monday aiming to extend a truce keeping sharply higher tariffs at bay ahead of the August 12 deadline. Oil prices settled on Friday at their lowest in three weeks as global trade concerns and expectations of more oil supply from Venezuela weighed. Venezuela's state-run oil company PDVSA is getting ready to resume work at its joint ventures under terms similar to Biden-era licenses, once U.S. President Donald Trump reinstates authorisations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, the prospect of OPEC+ further easing supply curbs limited the gains. A market monitoring panel of the Organization of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week. Another source said it was too early to say. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 bpd in July on year, while global oil stocks rose 1.6 million bpd. In the Middle East, Yemen's Houthis said on Sunday they would target any ships belonging to companies that do business with Israeli ports, regardless of their nationalities, as part of what they called the fourth phase of their military operations against Israel over the Gaza conflict.
