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U.S. stock markets climbed on Monday as investors looked ahead to a busy week of second-quarter earnings reports. The S&P 500 rose 0.6% by early afternoon, hovering near record levels. The Nasdaq Composite was up 0.7%, while the Dow Jones Industrial Average added 239 points, or 0.5%.
Markets had paused near their highs last Friday, partly due to concerns over possible new tariffs. Reports said former President Donald Trump is pushing for a 15% to 20% tariff on imports from the European Union, which are expected to go into effect on August 1. These potential trade tensions have added a layer of uncertainty as corporate earnings season ramps up.
Tesla and Alphabet set to report
Investors are particularly focused on upcoming earnings from major tech companies. Tesla and Alphabet, two members of the so-called “Magnificent Seven” group of dominant tech giants, are set to report on Wednesday. Their results are expected to influence the broader market, especially as traders look for signs of continued strength in the tech sector.
Last week, strong earnings from big banks helped lift investor confidence. However, several lenders also warned that Trump’s proposed tariffs could pose risks to the economic outlook for the rest of the year. This has led many to watch closely for any mention of trade tensions in company earnings calls this week.
Verizon and Domino’s Post Results
Among Monday’s key earnings updates, Verizon Communications reported better-than-expected demand for its premium wireless plans. As a result, the company raised the lower end of its full-year earnings guidance.
Domino’s Pizza, on the other hand, missed profit expectations for the quarter. Still, the pizza chain’s revenue came in above estimates, helping boost its stock. The company remains the largest pizza brand in the world by sales.
Oil Prices Dip on Trade Concerns and Sanctions
In commodities, oil prices edged lower due to ongoing worries about global demand. Investors are also watching how new European sanctions on Russian crude will affect supply.
As of late Monday morning, Brent crude, the international benchmark, was down 0.3% at $69.11 per barrel. U.S. West Texas Intermediate (WTI) crude dipped 0.2% to $65.88.
Last week, the European Union introduced new sanctions targeting Russia over its war in Ukraine. One focus of the sanctions was India’s Nayara Energy, which refines and exports oil products made from Russian crude.
Despite these moves, analysts at ING said the market hasn’t reacted strongly. According to them, traders remain sceptical about the impact of the latest sanctions. However, ING did highlight one measure that could have broader effects: the EU’s plan to ban imports of refined oil products made from Russian crude, even if the refining happens in a third country.
What to Watch Next
With more major companies set to report this week, including Tesla and Alphabet, investors will be watching not just for earnings numbers but also for guidance on how companies expect to handle ongoing economic uncertainties, including rising trade tensions and shifting global demand.