US stock indices closed mixed yesterday. The S&P 500 rose by 0.14%, and the Nasdaq 100 gained 0.38%. However, the industrial Dow Jones dipped by 0.04%.

Today, Asian stocks declined as renewed concerns over tariffs resurfaced. Investors are also awaiting earnings reports from major corporations this week to gauge how companies are coping with the trade barriers.

Japanese stocks fell alongside the yen amid fiscal spending worries following the weekend election defeat of Prime Minister Shigeru Ishiba's coalition. The MSCI index for Asia-Pacific shares fell by 0.4%. Futures for European stock indexes dropped 0.5%, while S&P 500 futures edged down 0.1%. Meanwhile, the US dollar index strengthened.

US Treasury yields ticked higher ahead of speeches from Federal Reserve officials, including Chairman Jerome Powell. Oil prices continued their downward slide.

Rising uncertainty over trade negotiations ahead of the August 1 deadline, combined with increasing concerns about corporate resilience under persistent tariffs, is adding new pressure to global markets. This has cast doubt on the sustainability of the recent record-breaking rally. Investors who recently basked in euphoria over positive macroeconomic data and record profits are now reassessing their strategies amid escalating trade tensions.

Corporations reliant on global supply chains are facing growing pressure, as tariffs not only raise operational costs but also inject uncertainty into future business planning. Questions around long-term competitiveness and profitability are becoming more pressing.

Many economists are already warning of potential downward revisions to earnings forecasts for the next quarter, which could trigger a market correction. As a result, investors are proceeding with caution, reassessing their portfolios, and shifting toward more conservative assets.

Notably, stocks rebounded sharply after their April decline, as fund managers increasingly leaned into the rally in risk assets. However, that rally will face a significant test this week, with companies like Tesla Inc. and Alphabet Inc. set to release their earnings reports. The overall outlook remains murky: while the market has climbed, the imposition of a new 20% tariff will undoubtedly affect demand. All eyes are now on August 1 and the potential for new trade agreements.

White House Press Secretary Karoline Leavitt stated that President Donald Trump may issue additional unilateral tariff letters before the August 1 deadline. She also noted that new trade deals could still be reached before then.

Meanwhile, officials at the Bank of England are reconsidering whether to delay plans for a digital pound aimed at households amid growing skepticism about the benefits of such a project. This reflects a broader global pullback in support for state-backed digital currencies.

S&P 500 technical outlook

From a technical viewpoint, today's key target for buyers will be to break through the nearest resistance level at 6,308. A successful move above this level could trigger further growth, opening the way toward 6,320. Maintaining control over the 6,331 level is equally important for the bulls, as it would further strengthen their position.