Wall Street Eyes Strong Close to Week as Market Weathers Tariffs
The US stock market is poised to close the week on a strong note, despite President Trump’s latest tariffs on Chinese goods. US futures rose on Friday, with the S&P 500 and Nasdaq 100 up 0.2%, while the Russell 2000 gained 0.41%. Investors are looking to a strong weekly close, driven by a mixed bag of earnings reports and a steady performance from major indices.
The market’s resilience comes as a surprise to many, given the tariff-related uncertainty. Trump’s latest move, imposing 10% tariffs on $300 billion worth of Chinese goods, has sparked concerns about global trade tensions and their impact on economic growth. However, investors seem to be shrugging off the concerns, focusing instead on the robust performance of the US economy and the earnings reports from major companies.
Earnings in Focus
Several companies are set to report their quarterly earnings on Friday, including fast-food chain Wendy’s, sportswear giant Under Armour, and streaming service fuboTV. Analysts are expecting a mixed bag of results, with some companies likely to beat expectations and others to miss.
Wendy’s is expected to report a 3.5% increase in sales, driven by its revamped menu and marketing efforts. Under Armour, on the other hand, is expected to report a 2.5% decline in revenue, due to increased competition and a decline in sales at its North American retail business. fuboTV is expected to report a 45% increase in revenue, driven by its growth in subscribers and advertising revenue.
Oil and Gold Prices
Meanwhile, oil prices slid on Friday, despite a reported drawdown in US crude inventories. Brent crude futures fell 0.7% to $63.45 per barrel, while West Texas Intermediate crude futures fell 0.6% to $58.25 per barrel. The decline in oil prices is attributed to concerns about the impact of tariffs on global demand and supply.
Gold prices, on the other hand, continued their upward trend, topping $3,500 per ounce for the first time in six years. The precious metal has been a safe-haven asset during times of uncertainty, and investors are flocking to it as a hedge against market volatility.
Bond Yields
The 10-year US Treasury yield held near 4.25% on Friday, as expectations of a strong economic growth and inflation remained unchanged. The yield has been rising steadily in recent weeks, driven by expectations of a rate hike by the Federal Reserve later this year.
Market Outlook
Despite the mixed earnings reports and tariff-related uncertainty, the market is expected to close the week on a strong note. The S&P 500 is up 0.4% for the week, while the Nasdaq 100 is up 0.5%. The Russell 2000, which is comprised of small-cap stocks, is up 0.9% for the week.
Investors are looking to a strong quarterly earnings season, which is expected to drive growth and optimism in the market. The US economy is also expected to continue growing at a robust pace, despite concerns about trade tensions and global uncertainty.
Conclusion
The US stock market is poised to close the week on a strong note, despite President Trump’s latest tariffs on Chinese goods. US futures rose on Friday, driven by a mixed bag of earnings reports and a steady performance from major indices. While there are concerns about global trade tensions and their impact on economic growth, investors seem to be shrugging off the uncertainty, focusing instead on the robust performance of the US economy and the earnings reports from major companies.
As the market looks to the weekend, investors will be keeping a close eye on the earnings reports from Wendy’s, Under Armour, and fuboTV. The companies’ results will provide a glimpse into their financial health and prospects for the future, and will likely influence the market’s direction in the coming weeks.
