Stock market today: Nasdaq secures record close as investors shake off tariff threats, eye key inflation data

Nasdaq Reaches Record High Amid Tariff Concerns and Inflation Focus

US equity markets advanced on Monday, with the Nasdaq Composite closing at a new all-time high as investors largely dismissed renewed tariff threats and concentrated on forthcoming inflation data and the onset of the second-quarter earnings season. The S&P 500 and Dow Jones Industrial Average also recorded modest gains, rising approximately 0.1% and 0.2%, respectively, while the technology-heavy Nasdaq increased by around 0.3%.

This positive momentum emerged despite escalating trade tensions following President Trump’s weekend announcement of 30% tariffs on goods imported from the European Union and Mexico, effective August 1. The announcement intensified pressure on key trading partners and introduced fresh uncertainty into global markets. Nevertheless, Wall Street appeared unfazed, maintaining confidence that the administration might ultimately moderate the proposed tariff increases. Negotiations between officials from the EU and Mexico continue in an effort to secure reduced tariff rates.

Retail investor engagement remained notably strong, with individuals trading a record $6.6 trillion worth of stock during the first half of 2025, reflecting sustained market confidence. Corporations are responding to the tariff environment in diverse ways; some are absorbing the increased import costs, while others are contemplating passing these expenses on to consumers.

Market Dynamics and Outlook

Oil prices declined slightly as investors evaluated the potential impact of new sanctions and tariffs on global supply and demand. Despite these challenges, both the S&P 500 and Nasdaq managed to overcome trade-related concerns and close at record levels, underscoring the market’s resilience.

Bitcoin experienced significant volatility, briefly surpassing $123,000 for the first time amid the commencement of Congress’s "Crypto Week." The cryptocurrency later retreated below $120,000, yet stocks linked to the crypto sector rallied as the House of Representatives considered three major pieces of crypto-related legislation.

Looking ahead, market participants are closely monitoring the June Consumer Price Index (CPI) report, scheduled for release on Tuesday. The data is expected to provide critical insights into the inflationary effects of earlier tariff rounds and will heavily influence expectations for the Federal Reserve’s forthcoming interest rate decision, anticipated in just over two weeks.

In addition to trade and inflation concerns, President Trump intensified tensions with Russia over the conflict in Ukraine by threatening "secondary" tariffs of up to 100% and pledging additional US military support for Ukraine.

Earnings season is poised to accelerate this week, with major US banks set to report results starting Tuesday. Investor interest is also rekindling in initial public offerings and mergers and acquisitions, while Wells Fargo prepares to release its earnings report following the lifting of a decade-long regulatory oversight.

Despite persistent trade uncertainties and inflationary pressures, the US stock market continues to demonstrate notable resilience, supported by robust investor participation and cautious optimism ahead of key economic data and corporate earnings.