July 19, 2025: US market wrapped up their third winning week out of the past four with a muted close on Friday, as investors reacted to fresh trade concerns involving the European Union and anticipated comments from Federal Reserve Chair Jerome Powell.
The S&P 500 edged lower by less than 0.1%, retreating slightly from its all-time high recorded a day earlier. The Dow Jones Industrial Average fell by 142 points, or 0.3%, weighed down by declines in 3M and American Express. Meanwhile, the Nasdaq Composite ticked up marginally by less than 0.1%, marking a new record.
Tensions flared after reports emerged that former President Donald Trump is pushing for a minimum 15%–20% tariff on EU goods in ongoing negotiations. According to the Financial Times, Trump is eyeing an August 1 deadline to impose 30% tariffs on the EU if a deal isn’t reached.
Consumer Sentiment and Inflation Fears Eased
Data from the University of Michigan’s July Survey of Consumers showed consumer concerns over inflation tied to tariffs have dropped to their lowest level since February. Overall sentiment rose 1.8% month-over-month to 61.8, in line with forecasts.
Earnings Drag on Dow
- Netflix shares tumbled 5% after the company forecasted a lower operating margin for the second half of the year compared to the first.
- 3M dropped over 3% after it revised its outlook for organic sales growth to 2%, down from the earlier range of 2%–3%.
- American Express fell 2% post-earnings, also contributing to the Dow’s slide.
What’s Ahead
Markets will be watching closely as Fed Chair Jerome Powell is scheduled to speak at a conference in Washington on Tuesday, potentially providing fresh insights on the central bank’s monetary policy stance.