Despite mounting concerns over trade policy and fresh tariffs, U.S. equities climbed higher last week, fueled by surprisingly resilient economic data and optimism surrounding earnings season.

🔍 Market Snapshot

  • S&P 500 and Nasdaq notched modest gains, reflecting investor confidence in corporate performance and a still-strong consumer.

  • June Retail Sales came in at +0.6%, far above the consensus of +0.1%, reversing a sharp decline in May and highlighting continued consumer spending momentum.

  • The Philadelphia Fed Manufacturing Index surged to +15.9, marking a strong rebound and signaling potential strength in the broader U.S. manufacturing sector.

These upbeat figures helped counterbalance concerns about the new round of reciprocal import tariffs announced earlier this month. So far, markets seem to be pricing in a relatively muted economic impact—at least in the short term.

🧠 What’s Driving This Strength?

While tariffs usually act as a headwind for markets, recent data shows surprising resilience in the face of geopolitical tension and global trade adjustments. This suggests that investors are placing more weight on domestic fundamentals—particularly strong consumer activity and robust earnings from tech giants expected this week.

Notably, expectations for an interest rate cut at the July 29–30 FOMC meeting have increased slightly, supported by softer inflation in June and a downward revision to Q1 GDP (-0.5% annualized).

📅 What to Watch This Week

Investors will be closely watching:

  • Existing Home Sales (Wed)

  • New Home Sales (Thurs)

  • Durable Goods Orders (Fri)

  • Earnings reports from Alphabet, Tesla, Microsoft, Meta, and Visa

Volatility may pick up as market participants weigh corporate results against macro pressures, especially with the August 1 tariff deadline approaching.

⚙ Navigating Volatility with a Smarter Approach

In environments like these—where headlines swing sentiment but strong fundamentals persist—strategic portfolio positioning is essential. At Managed Accounts IR, we help investors capture opportunities while managing risk through:

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Wishing you a great week!

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