The S&P 500 and Nasdaq Composite ended largely unchanged on Friday, having dipped earlier after a Financial Times report indicated US President Donald Trump was pushing for steep new tariffs on European Union products.

The FT report, which said the Trump administration was eyeing a minimum tariff of between 15 per cent and 20 per cent in any deal with the European bloc, sent markets lower before they partly recovered.

According to preliminary data, the S&P 500 lost 1.16 points to end at 6,296.20 points, while the Nasdaq Composite gained 9.33 points, or 0.1 per cent, to 20,894.98. The Dow Jones Industrial Average fell 142.40 points, or 0.3 per cent, to 44,342.09.

The Australian sharemarket is set to fall, with futures pointing to a drop of 49 points, or 0.6 per cent, at the open. The Australian dollar was fetching 65.20 US cents at 5.25am AEST.

Both the S&P 500 and Nasdaq have been pushed to repeated record highs in recent weeks, as investors showed increased ambivalence to Trump’s tariff threats, and confidence these policies may not damage the US economy as severely as once feared.

Still, this week was seen as a proving ground for how Trump’s economic policies are filtering into the wider economy.

A raft of economic data offered mixed signals, including robust retail sales, a rise in consumer inflation, and flat producer prices for June.

The University of Michigan’s Consumer Sentiment Index increased this month, although consumers were still worried about future price pressures.

Earnings season kicked off this week, giving an opportunity to US corporations to showcase how tariffs were, or were not, affecting their businesses.

Industrial giant 3M fell after the company said the impact of tariffs will mostly be felt in the second half of the year.

“People are a little tired of trying to trade tariff headlines or deadlines, and people are more concerned with seeing the proof of this come to fruition through numbers,” said Greg Boutle, head of US equity and derivative strategy at BNP Paribas.

Of the 59 S&P 500 companies to first report second-quarter earnings this season, more than 81.4 per cent have topped Wall Street’s earnings expectations, according to LSEG I/B/E/S data.

Charles Schwab was among the latest on Friday, advancing after posting higher profits. Regions Financial jumped after raising its forecasts for 2025 interest income.

The week has shown, though, that beating estimates is not a recipe for trading higher. American Express outpaced second-quarter profit estimates, but its shares dropped. Netflix fell despite the success of Squid Game helping the company surpass earnings forecasts. The streaming company also lifted its annual revenue outlook.

Elsewhere, cryptocurrency stocks, including Robinhood Markets and Coinbase Global, rose after the US House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies.

Of the S&P sectors in positive territory, utilities was the biggest gainer.

Energy led those in the red. It was weighed down by SLB, which dropped after reporting lower quarterly profit and a downbeat outlook, and Exxon Mobil, which slumped after losing a landmark legal battle over Chevron’s acquisition of Hess.

Reuters

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