UTEX

Tariffs return. Oil back at $90. Fed rate meeting ahead 🔽 The U.S. market closed its second consecutive week lower: the SPY lost nearly 1%, and the Nasdaq fell 2%. Tesla and Google dropped 18% and 10%, respectively, after their earnings reports. Also notable decliners included Rollins (−15%), Moderna (−13%), and C.H. Robinson (−11%). 💡 Among the top gainers: Super Micro Computer (+24%), Lockheed Martin (+15%), and International Paper (+12%). 🪙 Bitcoin edged up 1% over the seven days to $65,350. Ethereum rose 4%, currently trading at $1,966. 🌎 Due to escalating tensions in the Middle East, U.S. WTI crude traded around $90 per barrel on Friday, up from $82 a week earlier and $69 at the start of July. Over the past three days, the US and Iran have ceased strikes. 👱‍♂️ Donald Trump announced new import tariffs on dozens of the United States' largest trading partners, including the European Union. The new tariffs will range from 10% to 12.5%. They will replace the temporary 10% tariffs that had been in place since February. The president also announced 50% tariffs on goods from Canada and 100% tariffs on generics within two years to encourage the relocation of drug manufacturing to the U.S. 🏦 On Wednesday, the Fed will decide on interest rates. The market is pricing in a 38% probability of a rate hike. A week ago, that probability was around 14%. By September, investors expect a rate hike with 85% probability. On Thursday, the July Personal Consumption Expenditures (PCE) price index — the Fed's preferred inflation gauge — will be released. 📢 Four companies from the Magnificent Seven will report in the coming days: Microsoft and Meta on Wednesday; Apple and Amazon on Thursday. Their results will be another test of whether the billions poured into AI investments are justified. 📰 About a quarter of S&P 500 companies have already reported. Based on the data released so far, FactSet raised its earnings growth expectations for index companies from 24.8% to 37.9%. Apart from the Big Tech names, quarterly results this week will also come from Visa, Boeing, Coca‑Cola, Qualcomm, Chevron, ExxonMobil, and AbbVie.