Stocks Rise on Wall Street Despite Tariff and Fed Uncertainty

Stocks Rise as Wall Street Holds Weekly Gains Amid Tariff Uncertainty

NEW YORK  — U.S. stocks climbed on Friday, keeping Wall Street on track for its third weekly gain in four weeks, even as investors remain wary of the economic impact of President Donald Trump’s new tariffs and the Federal Reserve’s interest rate decisions.

The S&P 500 rose 0.8%, hovering near record highs. The Dow Jones Industrial Average was up 254 points (0.6%), while the Nasdaq gained 0.9%, building on its all-time high from Thursday.

Tech and Health Stocks Lead the Way

Technology stocks once again powered the rally:

• Nvidia rose 1.2%

• Apple jumped 3.2%

Meanwhile, Gilead Sciences surged 8.9%, reporting stronger-than-expected earnings and raising its forecast. Expedia Group also beat expectations, gaining 4.1%.

These results came as part of the final wave of Q2 earnings reports, most of which were positive despite warnings that Trump’s tariffs could dent future profits.

Trump Tariffs and Fed Policy in Focus

Markets remained fixated on the economic uncertainty tied to Trump’s tariffs, which were expanded Thursday to cover dozens of U.S. trading partners. While intended to boost domestic production, they have clouded the outlook for inflation, corporate profits, and global trade.

“The unknown path of the economy amid an unpredictable tariff policy has been the key reason for the Fed to hold its benchmark interest steady.”

Still, Trump is pressuring Fed Chair Jerome Powell to cut interest rates. Trump’s recent nomination of Stephen Miran, a known rate-cut advocate, could tip the Federal Open Market Committee toward looser policy.

Interest Rates and Treasury Yields React

Wall Street expects the Fed to cut interest rates by 0.25% at its September meeting. The central bank has so far held rates steady, though two of twelve members voted to cut in the last session.

On Friday:

• 10-year Treasury yield rose to 4.29% from 4.25%

• 2-year Treasury yield, closely tied to Fed expectations, rose to 3.76% from 3.73%

Lower rates can support economic growth and asset prices, but they may also risk rekindling inflation, which the Fed is trying to cool to its 2% target.

Investors Eye Inflation and Retail Data

Wall Street and the Fed will gain clearer insights next week from several key reports:

• Consumer Price Index (CPI)

• Producer Price Index (PPI)

• Retail sales data

These figures will offer a closer look at inflation trends and consumer strength, both critical for shaping future Fed policy.

“Stocks will stay supported amid solid fundamentals, but fresh headlines may challenge investor sentiment,” said Ulrike Hoffmann-Burchardi of UBS Global Wealth Management.

Global Markets React to Tariff News

In Asia:

• Nikkei rose 1.9% after Japan’s trade envoy said the U.S. would address a tariff dispute

• Other major Asian markets closed lower

In Europe:

• Markets were mixed, reflecting uncertainty over trade and economic conditions

Summary Snapshot