U.S. stocks edged higher today despite an initial decline, driven by concerns over the latest moves by U.S. President Donald Trump in trade policy. Investors are now turning their attention to new data on the state of the U.S. economy and upcoming corporate earnings reports.
Major Index Movements
The Dow Jones Industrial Average, which includes shares of thirty leading American companies, gained 0.20 percent to close at 44,459.65 points. The broader S&P 500 index rose 0.14 percent to 6,268.56 points, and the Nasdaq Composite, which features many high-tech firms, climbed 0.27 percent to 20,640.33 points.
Over the weekend, Trump announced that the United States would impose a 30 percent tariff on goods imported from the European Union and Mexico, effective August 1. However, investor reaction to Trump’s latest tariff plans was muted, as the president has previously reversed or softened such trade measures after announcing them.
Investor Expectations and Euro Trends
Investors are now awaiting Tuesday’s report on U.S. inflation for the month of June. Market attention is also focused on the quarterly earnings results to be released this week by several major American banks and streaming giant Netflix.
On the foreign exchange market, the euro dropped to a three-week low against the U.S. dollar during today’s trading, but later recovered some of its losses. Around 10 p.m. CEST, the euro was down about 0.2 percent, trading near $1.1670, after previously falling as low as $1.1649, Reuters reported.
“If Trump manages to force the U.S.’s trading partners into significant concessions under tariff threats, it could be favorable for the dollar,” analysts at Commerzbank noted. However, they also warned that the dollar could be negatively affected by the high level of uncertainty American companies face due to Trump’s trade policies.
Source: ČTK
