Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed Monday’s trading session in positive territory, shrugging off President Trump’s 30% tariffs on the European Union and Mexico, effective as of August 1.
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We had the impression that we were very close to an agreement,” said EU trade commissioner Maroš Šefčovič after hearing of the higher tariff. He emphasized that it could “practically prohibit” U.S.-EU trade. Now, the EU is considering imposing tariffs on $84 billion of U.S. goods if trade talks between the two parties fail.
Trump also threatened to hit Russia with a 100% secondary tariff if the country continues to attack Ukraine. He added that the tariff would take effect in 50 days, or on September 2. Secondary tariffs will affect buyers of Russian exports and take a toll on the country’s energy industry. Russia is a global energy leader with key customers that include China, India, and the European Union.
On Tuesday, the Bureau of Labor Statistics will release its June consumer price index (CPI) inflation report. Economists expect inflation to grow by 0.3% month-over-month and 2.6% year-over-year. That would signal an acceleration from May’s monthly and yearly increases of 0.1% and 2.4% as economists expect the effects of tariffs to kick in.
Another key event is also set for Tuesday. President Trump and Pennsylvania Senator Dave McCormick are set to announce a $70 billion AI and energy investment at Pennsylvania’s inaugural Energy and Innovation Summit. The investment will go towards electricity grids, data centers, AI training programs, and more. It marks a record investment in Pennsylvania’s AI and energy sector and is expected to create thousands of new jobs as well.
Finally, the S&P 500 (SPX) received a price target boost from RBC Capital Markets. RBC raised its 2025 SPX target to 6,250 from 5,730. However, its revised target is still below where the SPX is currently trading.
“We feel neutral on the outlook for stocks in the second half of 2025, and are mindful that our new price target is essentially in line with recent levels,” said RBC strategists led by managing director Lori Calvasina.
The S&P 500 ended with a 0.14% gain while the Nasdaq 100 (NDX) rose higher by 0.33%.
