US: Nasdaq hits new record as markets shrug off tariff talk
[NEW YORK] The Nasdaq pushed to a fresh record on Monday as markets weighed President Donald Trump’s latest tariff threats and looked ahead to earnings from large banks.
Major indices finished higher following a meandering session. While threats of new 30 percent tariffs against the European Union and Mexico have received plenty of attention, investors remain skeptical that Trump will enact such big levies.
“The market is betting that by August 1st these tariffs are not going to be implemented at these levels,” said Peter Cardillo of Spartan Capital Securities. “And so the market continues to rally.”
The tech-rich Nasdaq Composite Index finished up 0.3 per cent at 20,640.33, its third record in four days.
The broad-based S&P 500 climbed 0.1 per cent to 6,268.56, narrowly missing a record of its own, while the Dow Jones Industrial Average advanced 0.2 per cent to 44,459.65.
Trump has revived his broadly directed trade offensive in the last week, targeting more than 20 countries with increased levies if they don’t reach deals with Washington.
But markets have adopted a wait-and-see perspective, viewing the statements as a bargaining tactic that will be adjusted during negotiations.
Besides tariffs, markets are looking ahead to earnings from JPMorgan Chase, Bank of America and other banks that will offer updates on the state of US consumers and on the health of the companies’ trading and investment businesses.
Markets are also awaiting US government reports on consumer pricing and retail sales for June, which will inform expectations on the likelihood and timing of Federal Reserve interest rate changes.
Futures markets are betting on an interest rate cut in September. AFP
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