Dow Jones sheds 125 points as trade worries temper investor optimism
U.S. stocks closed mixed Friday as fresh economic data reassured investors about growth, even as tariff tensions resurfaced. The tech-heavy Nasdaq Composite (IXIC) inched higher to a new closing record, while the S&P 500 (GSPC) and Dow Jones Industrial Average (DJI) gave back modest gains.
Consumer sentiment edged higher, supported by falling inflation expectations, according to the University of Michigan survey. Yet trade concerns loomed large after reports suggested President Donald Trump is pushing for blanket tariffs on European Union imports.
Indexes at Close
| Index | Latest Change | % Move | Record? |
| Nasdaq Composite (^IXIC) | +⬆ Slightly up | — | ✅ Record close |
| Dow Jones Industrial Average (^DJI) | -125 pts | -0.3% | ❌ |
| S&P 500 (^GSPC) | Slight dip | Below flatline | ❌ |
Stocks largely consolidated after Thursday’s rally, with the S&P 500 and Nasdaq reaching new highs. Analysts said the data showed consumers haven’t yet pulled back spending, despite recent trade policy jitters.
Economic Highlights
| Report | Key Metric | Change |
| Michigan Consumer Sentiment | Inflation expectations (1-year) | ↓ to 4.4% from 5% |
| Netflix Earnings | Q2 profit and revenue | ✅ Beat |
| American Express (AXP) | Consumer spending trends | ✅ Strong |
Netflix’s strong earnings failed to impress investors, who were looking for a more aggressive full-year forecast. Meanwhile, American Express delivered robust quarterly results, reinforcing signs that high-end consumers are still spending.
Trump’s threat of 15% to 20% tariffs on EU imports added uncertainty to trade negotiations, with an Aug. 1 deadline looming. The Financial Times reported that the president seeks these tariffs as a condition for any deal.
Federal Reserve Chair Jerome Powell, under pressure from Trump, defended the central bank’s headquarters renovation in a letter Thursday. Attention is shifting to who may succeed Powell next year, as the White House seeks someone who can balance policy independence with political expectations.