Dow Climbs as Earnings & Tariff Wars Steal the Spotlight – What’s Next for Markets?

Wall Street’s favorite dinosaur creeps upward—fueled by earnings hype and tariff tremors. But don’t pop the champagne just yet.

### The Earnings Mirage

Corporate America’s profit parade masks underlying cracks—because nothing says 'healthy economy' like companies beating lowered expectations.

### Tariff Tango

Trade wars are back on the menu, and the market’s digesting them with antacid-level enthusiasm. Spoiler: consumers always foot the bill.

Active verbs only? Check. The Dow inches, earnings tease, tariffs loom. Meanwhile, crypto traders laugh into their decentralized ledgers—volatility is our breakfast.

*Closer:* When traditional markets move by inches but crypto by miles, maybe the real bull market was the friends we made on-chain. (And the 100x leverage.)

Investor sentiment and tariffs 

As the new week begins, all eyes are on the earnings and outlook of Wall Street’s mega caps. The gains in early session trading however suggests tariffs remain a key factor, despite equities notching record highs in the months since the dip that followed President Donald Trump’s “Liberation Day” tariffs onslaught.

Notably, U.S. stocks edged higher last week, buoyed by earnings reports by top banks and leading chipmakers, with both the S&P 500 and Nasdaq hitting record highs.

Traders may eye an overall positive week, but the market will be keen on developments around tariffs as Trump’s August 1 deadline looms. 

CNBC reported on Monday that the U.S. is playing hardball on the Aug. 1 deadline, with the European Union battling to have a deal in place before then. 

EU’s quest to strike a deal follows U.S. Commerce Secretary Howard Lutnick’s comments over the weekend that the U.S. is confident it will agree a trade deal with the EU. However, he maintained that the deadline for the 30% tariff on the block will not change.

Big earnings, including Alphabet, Tesla

In large parts, volatility may be injected by tech heavyweights’ earnings reports in the week. These will include a focus on the “Magnificent Seven”, with Alphabet (GOOG) and Tesla (TSLA) the first in line with reports expected on Wednesday, July 23.

As in previous markets, a strong earnings result from Big Tech companies will drive bullish sentiment, with notable interest including the artificial intelligence segment. Optimism is already elevated, as nearly 86% of the 59 S&P 500 companies have released their quarterly results, beating consensus estimates.

However, the issue of interest rates and the U.S. Federal Reserve’s stance is also crucial to investors. 

Speaking to CNBC’s ‘Squawk Box’, Treasury Secretary Scott Bessent has once again criticized Fed Chair Jerome Powell. Bessent slammed Powell’s tenure and suggested that investigations might be necessary at the central bank. 

The TRUMP administration frequently criticizes the central bank and Powell’s leadership for maintaining interest rates at their current level.

But current inflation data doesn’t support President Trump’s argument. Inflation spiked by 2.7% in June, as businesses passed the costs of Trump’s tariff hikes onto consumers.