The S&P 500 pulled back from record highs on Friday as investors digested this week’s renewed threat of tariffs from President Donald Trump. The White House sent letters to several U.S. trading partners, warning them of levies if trade agreements aren’t reached by August 1.
On Saturday, Trump announced a new tariff regime for the European Union and Mexico, with rates ranging from 30% to 35%. This comes after earlier threats against Canada, Japan, and Brazil. Despite these warnings, the S&P 500 closed at a record high on Thursday, suggesting investors have become more accustomed to Trump’s negotiation style.
Jim Cramer, a CNBC Investing Club member, stressed the importance of separating personal views from investment decisions. “Nobody ever made a dime panicking,” he said. Instead, focus on what Trump’s policies mean for economic growth and corporate earnings. This includes artificial intelligence advancements and deregulation under the Trump administration.
Companies like Nvidia, Goldman Sachs, and Wells Fargo are expected to release earnings reports in the coming week. The market is poised for significant growth as companies invest heavily in AI, driving demand across sectors beyond technology.
However, there are long-term consequences to automation that need consideration. As robots replace human workers, costs can come down, supporting profit margin expansion. Deregulation will also have a positive impact on businesses, allowing them to reshape and reorganize for increased efficiency.
The Investing Club urges members to invest based on the implications of policies being passed, rather than politics. By focusing on earnings power and market trends, investors can make informed decisions.
Note: The CNBC Investing Club is subject to terms and conditions, including a disclaimer that no specific outcome or profit is guaranteed.
Source: https://www.cnbc.com/2025/07/12/why-the-near-record-high-market-has-taken-trumps-renewed-tariff-blitz-in-stride.html