Wall Street Shakes Off Tariff Jitters as Nasdaq Hits Another Record

The stock market overcame a weak start on Monday, shrugging off fresh tariff headlines to notch modest gains and send the Nasdaq to another record close.

Early pressure followed news of a proposed 30% tariff on imports from the EU and Mexico, slated to begin August 1. Markets opened on the defensive, but as has been the trend lately, investors showed a resilient stance toward trade headlines. This time, reassuring comments from both the EU Commission President and Mexico’s President—expressing openness to renegotiating trade terms—helped calm nerves and slow the selling momentum.

President Trump’s announcement of potential secondary tariffs on Russia—up to 100% beginning September 1 unless a ceasefire is reached—had little impact on the session, as markets focused more on near-term catalysts.

Despite the rebound, gains were muted. Investor conviction was tempered by a busy week ahead, with key inflation data and the start of earnings season on deck. June CPI data will be released tomorrow, followed by PPI on Wednesday and retail sales on Thursday. Anticipation around these reports helped keep a lid on aggressive buying.

Financial stocks saw some pre-earnings positioning, lifting the sector to a 0.7% gain. Wells Fargo (+1.1%), Citigroup (+0.9%), and JPMorgan Chase (+0.6%) all moved higher ahead of their Q2 reports due before Tuesday’s open.

The communication services sector also rose 0.7%, bolstered by Netflix (+1.3%) ahead of its Thursday earnings report, and gains in mega-cap names Alphabet (+0.8%) and Meta Platforms (+0.5%).

Mega-cap stocks outperformed slightly overall, with the Vanguard Mega Cap Growth ETF rising 0.3% versus a 0.1% advance in the S&P 500. Broader strength was evident in smaller names, with the Russell 2000 up 0.5% and the S&P MidCap 400 up 0.2%.

Seven of the 11 S&P 500 sectors closed higher, with gains ranging from 0.1% to 0.7%. The energy sector was the day’s lone standout to the downside, falling 1.2% in tandem with a 2.3% drop in WTI crude prices to $66.90 per barrel.

Unlike the broader market benchmarks, our FTinvest 11 portfolio struggled to gain traction today and spent nearly the entire session in negative territory. While major indices managed to stabilize or rebound, FTinvest 11 remained under pressure, unable to shake off early weakness.

By the closing bell, the index had retreated 0.5%, slipping just below the 800-point threshold to end the day at 799.02. Today’s decline marked a pause in the portfolio’s recent upward momentum and highlighted sector-specific softness that weighed on performance.

We’ll be watching closely to see whether FTIinvest 11 can regain its footing in the sessions ahead or if today’s pullback signals a deeper consolidation phase.