U.S. stocks surged as markets reacted to expectations of a shift in Trump’s policy stance. The Dow closed at a record 53,178, while the S&P 500 rose 1.5% to 7,600 and the Nasdaq gained 2.1%. WTI crude futures fell more than 6% to $79.49 a barrel and Treasury yields declined across maturities. Boeing shares rose nearly 5% after its second-quarter results pointed to improving earnings and cash flow, and 77% of companies have beaten expectations.

The Trump administration announced new 10% to 25% tariffs on a range of goods from major trading partners, while oil prices remained up more than 28% for the month, adding to inflation concerns ahead of the Federal Reserve’s July meeting. Markets have trimmed expectations that the Fed will hold rates steady, with the implied probability falling to 64% from 87%, according to CME Group FedWatch. The Nasdaq Composite slid 0.6% and logged a second straight weekly decline, while Intel sank 7.9% despite a 25% revenue jump, highlighting worries about costs and end-market demand. Digital Realty surged 10.9% on strong AI data-center demand.

Alphabet (Google) reported after the close that second-quarter capital expenditures totaled $45.1 billion, in line with its full-year $180 billion to $190 billion AI infrastructure guidance. WTI crude rose 2.8% to $86.66 a barrel after President Donald Trump threatened retaliation for attacks by Iran in the Strait of Hormuz. Technology shares broadly weakened, leaving the Nasdaq down 0.6%, the S&P 500 off 0.1% and the Dow slightly lower. Constellation Energy is scheduled to report second-quarter earnings on Thursday, August 6.

The Federal Reserve’s first FOMC statement under new Chair Kevin Warsh kept the federal funds target range unchanged at 3.50% to 3.75% but struck a more hawkish tone by emphasizing “delivering price stability.” CME FedWatch showed rising odds of an October rate hike, while the 2-year Treasury yield jumped 16.9 basis points to 4.216%. U.S. stocks fell across the board, with the Dow down 1% to 51,493, the S&P 500 off 1.2%, and the Nasdaq down 1.3%.