Overview

• S&P 500 and Nasdaq Composite notched all-time closing highs this week as about 80% of reporting S&P 500 companies beat second-quarter earnings estimates
• The U.S. and Japan formalized reciprocal 15% tariffs on each other’s goods, reducing trade uncertainty and lifting risk sentiment
• Negotiators from Washington and Brussels are nearing a reciprocal 15% tariff framework, reinforcing optimism about a U.S.-EU agreement
• Alphabet shares rose after posting a stronger-than-expected quarter, while Tesla slid on a second consecutive drop in auto revenue
• Markets are pausing ahead of next week’s Fed meeting and the Aug. 1 tariff deadline, with traders assigning about a 62% probability to a September rate cut