A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell on July 18, 2025, in New York City.
Angela Weiss | AFP | Getty Images
The Dow Jones Industrial Average took a leg lower Friday after President Donald Trump reportedly pushed for greater tariffs on the European Union.
The 30-stock Dow fell 208 points, or 0.5%. The S&P 500 lost 0.1% after hitting a record high earlier in the day, while the Nasdaq Composite hovered near the flatline.
Trump is demanding a minimum tariff of between 15% and 20% in any deal with the EU, the Financial Times reported, citing three people briefed on the talks. The EU is attempting to reach a trade deal with the U.S. ahead of Trump’s Aug. 1 deadline, when Trump has vowed to begin implementing 30% tariffs on the bloc.
Traders also pored through the latest earnings reports and new U.S. economic data.
Data released Friday reflected a drop in consumers’ fears about tariff-induced inflation down to their lowest levels since February. The University of Michigan’s Survey of Consumers for July reflected overall consumer sentiment rose 1.8% from June to 61.8, coming out exactly in line with the estimate and at the highest level since February.
On the earnings front, shares of Netflix slid 4%, despite posting an bottom-line beat on Thursday. Shares of 3M were also down slightly even after the company exceeded analysts’ estimates on top and bottom lines. A 3% post-earnings slide in American Express dragged the Dow lower.
Despite the mixed reaction to the latest corporate report, the season is off to a strong start.
With 12% of S&P 500 companies reporting results so far, 83% have beaten estimates. On Thursday, PepsiCo and United Airlines shares both popped after the respective companies beat analyst estimates on earnings. Those follow solid results from big banks like JPMorgan and Goldman Sachs earlier in the week.
Both the S&P 500 and Nasdaq were headed for weekly gains, rising 0.5% and 1.4%, respectively, in that time. The Dow was slightly lower week to date.
“It’s a risk-on environment, and while there’s chatter about Fed cuts, the reality is more nuanced,” said Ken Mahoney, CEO at Mahoney Asset Management. “Historically, bull cycles tend to perform better without rate cuts and the first cut is often a bearish signal, though there’s a valid case to be made this time around, especially with inflation cooling and GDP growth projections still intact after we got through the threat of massive tariffs.”