Earnings Heat Up While Markets Cool on Tariff Fears

Earnings Heat Up While Markets Cool on Tariff Fears

The Major Markets logged gains across the board last week. This was complete with fresh all-time new highs in the S&P 500 and Nasdaq on Friday.

The presence of positive performance was consistent at the sector level as all 11 sectors closed higher. Last week was stimulated in large part due to earnings releases and trade optimism around tariff news.

Fact Set reported that 34% of the S&P 500 constituents have reported as of Friday. Of those, 80% have beat their EPS estimates. This week, another 747 companies will be reporting, followed by the peak number of companies reporting their results next week.

Major Markets		YTD as of 07/25/2025
	Nasdaq
	Dow Jones Industrial
	S&P 500
	MSCI World
	MSCI EM
	Russell 2000
	Bar US Agg Bnd

S&P Sectors

YTD as of 07/25/2025

Comm. Services

Cons. Discretionary

Cons. Staples

Energy

Financials

Health Care

Industrials

Info. Technology

Materials

Real Estate

Utilities

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In geopolitical news, Japan reached a deal with the US last week which saw overall import tariffs cut from 25% down to 15%. As Reuters pointed out, this deal serves as a likely template for other countries and trade unions ahead of the August 1st deadline.

The equity market wasn’t alone in positive territory. Overall, the bond market also experienced a favorable week with gains across a number of bond indices. As of Friday, the Bloomberg Barclays Aggregate Bond Index sits with a year-to-date gain of 3.6%.

https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_072525.pdf

https://www.reuters.com/world/china/us-japan-trade-deal-averts-worst-global-economy-2025-07-23/

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The S&P 500® Index is a capitalization index of 500 stock-designed to measure performance of the broad domestic economy through changes in the aggregate market value of stock representing all major industries. https://us.spindices.com/indices/equity/sp-500

The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities. https://us.spindices.com/indices/equity/dow-jones-industrial-average

The NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes over 2,500 companies, more than most other stock market indexes. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indexes. https://indexes.nasdaqomx.com/Index/Overview/COMP

The MSCI World Index, which is part of The Modern Index Strategy, is a broad global equity benchmark that represents large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float-adjusted market capitalization in each country and MSCI World benchmark does not offer exposure to emerging markets.

The MSCI Emerging Markets (EM) Index is designed to represent the performance of large- and mid-cap securities in 24 Emerging Markets countries of the Americas, Europe, the Middle East, Africa and Asia. As of December 2017, it had more than 830 constituents and covered approximately 85% of the free float-adjusted market capitalization in each country. https://www.msci.com/

The S&P GSCI Crude Oil index provides investors with a reliable and publicly available benchmark for investment performance in the crude oil market. https://us.spindices.com/indices

Companies in the S&P 500 Sector Indices are classified based on the Global Industry Classification Standard (GICS®). https://us.spindices.com/indices

Weekly Market Commentary