Stocks Bounce Back as Earnings Outshine New Tariffs:
Stocks rebounded last week as investor optimism for a September rate adjustment and strong Q2 corporate results overcame the rollout of fresh tariffs.
The S&P 500 Index rose 2.43%, while the Nasdaq Composite Index gained 3.87%. The Dow Jones Industrial Average added 1.35%. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.77%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 8/4/25 = 0)
Stocks Gyrate
Stocks pushed higher to start the week, with major averages gaining between 1.3% and 2%—their best day since May. Investors seemed more optimistic for a rate move after the weaker-than-expected July jobs report.3,4
Stocks rose again midweek after the White House confirmed a mega-cap tech company would invest $500 billion more in domestic manufacturing. News of additional tariffs on India was greeted with a muted reaction from investors.5
The updated tariffs previously announced by the White House went into effect on Thursday. Markets initially rose in early trading but then came under pressure as the day continued.6
But the S&P and Dow rose again on Friday, ending the week with solid gains. The tech-heavy Nasdaq ended the week with a record close.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Economy Watch
Services comprise 70% of the economy, so Wall Street closely monitors the Institute for Supply Management’s Services Index.
So, news on Tuesday that growth in services came below economists’ expectations was a bit of a concern. However, investors seemed to quickly look past the number and focus more on the 122 S&P 500 companies that reported earnings last week.8,9
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, August 8, 2025
2Investing.com, August 8, 2025
3MarketWatch.com, August 4, 2025
4CNBC.com, August 5, 2025
5CNBC.com, August 6, 2025
6WSJ.com, August 7, 2025
7WSJ.com, August 8, 2025
8WSJ.com, August 5, 2025
9Advantage.FactSet.com, August 1, 2025
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