People walk in front of a J.P. Morgan Financial Center in New York City, U.S., July 16, 2025.
Kylie Cooper | Reuters
Friday, Aug. 1 — the “hard deadline” of U.S. President Donald Trump’s updated tariffs — is less than two weeks away. Investors, however, seem mostly unbothered thus far. For last week, while the Dow Jones Industrial Average dipped marginally, the S&P 500 and Nasdaq Composite rose 0.6% and 1.5%, respectively.
Even a report that Trump wanted a minimum of 15%-20% tariffs on the European Union only dealt a minimal blow to markets, which mostly closed unchanged Friday. Although those figures are higher than the universal 10% baseline tariff Trump reportedly wanted — and which the EU is hoping to secure — they are still lower than the 30% Trump said he will impose on the bloc in his July 12 letter.
An upbeat start to earnings season has also helped to quell tariff fears for now. Around 83% of the S&P 500 companies that have reported earnings have exceeded expectations, according to FactSet data. In particular, big banks such as JPMorgan Chase and Goldman Sachs, which serve as barometers for economic activity, had solid beats, boosting investor sentiment.
Next in the spotlight are Big Tech earnings, which will be released in the weeks right before Aug. 1. If better than expected, they might dispel geopolitical jitters — or cause investors to dismiss trade fears too readily. In these stormy times, every silver lining has a dark cloud.
What you need to know today
Aug. 1 is a ‘hard deadline’ for new tariffs. U.S. Commerce Secretary Howard Lutnick said Sunday that the tariffs will take effect next month, but left open the possibility of continuing trade negotiations after the date.
U.S. stock futures are little changed Sunday stateside. On Friday, the S&P 500 and Nasdaq Composite closed around the flatline. The Dow Jones Industrial Average, however, lost 0.32%. Asia-Pacific markets traded mixed Monday.
China keeps its benchmark lending rates steady. On Monday, the People’s Bank of China announced it was holding the 1-year loan prime rate at 3.0% and the 5-year LPR at 3.5%. After the move, the offshore yuan remained mostly flat.
Huawei has evolved from a telecom giant to artificial intelligence leader. Despite — or precisely because of — restrictions imposed on the Chinese company by the U.S. in 2019, Huawei has achieved breakthroughs in its chips and appears to be Beijing’s answer to Nvidia.
[PRO] The beneficiary of a foldable phone from Apple. While the Cupertino-based company has yet to release a foldable — unlike its rivals such as South Korea’s Samsung and China’s Honor — buyers are already lining up for a potential major supplier.
And finally…
A staff member counts Singapore dollar currency notes at Raffles Place financial business district in Singapore on October 6, 2022.
Roslan Rahman | Afp | Getty Images