{"id":356,"date":"2025-07-14T12:37:50","date_gmt":"2025-07-14T12:37:50","guid":{"rendered":"https:\/\/zoltrunakiver.com\/?p=356"},"modified":"2025-07-21T14:24:56","modified_gmt":"2025-07-21T14:24:56","slug":"wall-street-hangs-near-its-record-amid-doubts-about-trumps-tariffs","status":"publish","type":"post","link":"https:\/\/zoltrunakiver.com\/index.php\/2025\/07\/14\/wall-street-hangs-near-its-record-amid-doubts-about-trumps-tariffs\/","title":{"rendered":"Wall Street hangs near its record amid doubts about Trump\u2019s tariffs"},"content":{"rendered":"

By STAN CHOE, AP Business Writer<\/strong><\/p>\n

NEW YORK (AP) \u2014 U.S. stock indexes hung near their records on Monday following President Donald Trump\u2019s latest updates to his tariffs, as speculation continues on Wall Street that he may ultimately back down on them.<\/p>\n

The S&P 500 edged up by 0.1% to pull within 0.2% of its all-time high set on Thursday. The Dow Jones Industrial Average added 88 points, or 0.2%, and the Nasdaq composite climbed 0.3% to set a record.<\/p>\n

Stock indexes elsewhere around the world were mixed in their first trading after Trump announced plans over the weekend for\u00a030% tariffs<\/a>\u00a0on goods from Mexico and the European Union. They won\u2019t take effect until Aug. 1, the same deadline that Trump announced last week for updated tax rates on imports from\u00a0Japan, South Korea and a dozen other countries<\/a>.<\/p>\n

The latest postponements for Trump\u2019s tariffs allow more time for him to reach trade deals with other countries that could lower the tariff rates and prevent pain for international trade. They also feed into speculation that Trump may ultimately back down on his tariffs if they end up creating too much damage for the economy and for financial markets.<\/p>\n

If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt U.S. voters but also raise the pressure on the U.S. government\u2019s debt level relative to the economy\u2019s size, particularly after Washington approved big tax cuts that will add to the deficit.<\/p>\n

\u201cWe therefore believe that the administration is using this latest round of tariff escalation to maximize its negotiating leverage and that it will ultimately de-escalate, especially if there is a new bout of heightened bond and stock market volatility,\u201d according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management.<\/p>\n

\u201cAs usual, there are many conditions and clauses that can get these rates reduced,\u201d said Brian Jacobsen, chief economist at Annex Wealth Management. \u201cThat\u2019s probably why the market might not like the tariff talk, but it\u2019s not panicking about it either.\u201d<\/p>\n

For the time being, all the uncertainty around tariffs could help keep markets unsteady. This upcoming week has several potential flashpoints that could shake things.<\/p>\n

On Tuesday will come the latest reading on inflation across the United States. Economists expect it to show inflation accelerated to 2.6% last month from 2.4% in May.<\/p>\n

Companies are also lining up to report how they performed during the spring. JPMorgan Chase and several other huge banks will report their latest quarterly results on Tuesday, followed by Johnson & Johnson on Wednesday and PepsiCo on Thursday.<\/p>\n

Fastenal, a distributor of industrial and construction supplies, on Monday reported a stronger profit for the latest quarter than analysts expected. Its stock rose 4.2%, though it also said that market conditions remain sluggish.<\/p>\n