(Reuters) – The S&P 500 and Nasdaq Composite ended little changed on Friday, overcoming a brief dip triggered by a Financial Times report indicating U.S. President Donald Trump was pushing for steep new tariffs on European Union products.
The FT report, which said the Trump administration was eyeing a minimum tariff of between 15% and 20% in any deal with the European bloc, sent markets lower before they partly recovered.
The S&P 500 (.SPX) lost 0.57 points, or 0.01%, to 6,296.79, and the Nasdaq Composite (.IXIC) gained 10.01 points, or 0.05%, to 20,895.66. The Dow Jones Industrial Average (.DJI) fell 142.30 points, or 0.32%, to 44,342.19.
Both the S&P 500 and Nasdaq have been pushed to repeated record highs in recent weeks, as investors showed increased ambivalence to Trump’s tariff threats, and confidence these policies may not damage the U.S. economy as severely as once feared.
Still, this week was seen as a proving ground for how Trump’s economic policies are filtering into the wider economy.
“People are a little tired of trying to trade tariff headlines or deadlines, and people are more concerned with seeing the proof of this come to fruition through numbers,” said Greg Boutle, head of U.S. equity and derivative strategy at BNP Paribas.
A raft of economic data offered mixed signals, including robust retail sales, a rise in consumer inflation, and flat producer prices for June.
The University of Michigan’s Consumer Sentiment Index increased this month, although consumers were still worried about future price pressures.
Earnings season kicked off this week, giving an opportunity to U.S. corporations to showcase how tariffs were, or were not, affecting their businesses.
Industrial giant 3M (MMM.N) fell 3.7% after the company said the impact of tariffs will mostly be felt in the second half of the year.
Of the 59 S&P 500 companies to first report second-quarter earnings this season, 81.4% have topped Wall Street’s earnings expectations, according to LSEG I/B/E/S data.
Charles Schwab (SCHW.N) was among the latest on Friday, advancing 2.9% after posting higher profits. Regions Financial (RF.N) jumped 6.1% after raising its forecasts for 2025 interest income.
The week has shown, though, that beating estimates is not a recipe for trading higher. American Express (AXP.N) outpaced second-quarter profit estimates, but its shares dropped 2.3%.
Netflix (NFLX.O) fell 5.1% despite the success of “Squid Game” helping the company surpass earnings forecasts. The streaming company also lifted its annual revenue outlook.
BNP’s Boutle said while not all individual stocks popped from earnings, the broader market has continued to grind higher. More meaningful market gains could come, he added, should some major companies deliver blowout numbers.
Cryptocurrency stocks rose after the U.S. House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. Robinhood Markets (HOOD.O) and Coinbase Global (COIN.O) were up 4.1% and 2.2%, respectively.
Of the S&P sectors in positive territory, utilities (.SPLRCU) was the biggest gainer. Its 1.7% advance pushed the index to a record close.
Energy (.SPNY) led those in the red, falling 1%. It was weighed down by SLB (SLB.N), which dropped 3.9% after reporting lower quarterly profit and a downbeat outlook, and Exxon Mobil (XOM.N), which slumped 3.5% after losing a landmark legal battle over Chevron’s (CVX.N) acquisition of Hess.
For the week, the S&P 500 gained 0.59%, the Nasdaq rose 1.5%, and the Dow slipped 0.07%.
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