Stock Market Update

[BRIEFING.COM] The stock market opened to modest losses following the announcement of a 30% tariff rate for Mexico and the EU, starting August 1, but has since rebounded with a methodical upward tick that now seats the major averages in positive territory.

It was not hard to find some optimism surrounding the tariff announcements, as the head of the EU's Executive Commission, Ursula von der Leyen, stated that the EU will refrain from imposing any retaliatory measures until the August deadline in hopes of negotiating a better deal, while Mexican President Claudia Sheinbaum also expressed confidence that she can strike a more favorable deal before the deadline.

The market has been largely unphased by tariff headlines involving Russia today that include secondary tariffs on Russia of up to 100% starting September 1 if Russia hasn't agreed to a ceasefire or end of war with Ukraine. President Trump is also set to meet Senate Majority Leader John Thune at the White House today to discuss the Senate Russia sanctions bill that allows President Trump to impose up to 500% tariffs on any country that buys Russian oil.

Today's steady, methodical rebound from tariff-related opening lows has been a familiar trend in recent weeks and reflects a wait-and-see mindset as tomorrow brings the release of June CPI data, which will shape the market's views on inflation and monetary policy.

Tomorrow also brings forth the earnings releases of several big banks before the opening bell. The financials sector (+0.6%) is among the top-performing sectors today in anticipation of the releases.

The communication services sector (+0.6%) is also outperforming today as shares of Netflix (NFLX 1263.50, +18.39, +1.5%) trade higher ahead of its earnings release after the close on Thursday.

The energy sector (-1.5%) is the worst performer, trading lower in conjunction with a $1.07 decrease in crude oil prices to $67.38 per barrel.

Treasuries are relatively flat, with the 10-year note yield up one basis point at 4.43%.