Positive US earnings report had little impact on stocks

Last week, financial companies released their earnings reports for the second quarter. The results beat Bloomberg's expert estimates by 94.4%. However, stocks showed only a muted reaction, as investors had largely expected this outcome.

The S&P 500 closed near an all-time high on Friday, setting seven new records in just 15 sessions. The index is now trading at 22 times its expected 12-month earnings and is quickly approaching the level seen back in February. At that time, President Donald Trump imposed import tariffs on key trade partners, which hurt investor sentiment.

Major US banks posted record profits thanks to strong trading revenue. The market volatility caused by Trump's unpredictable policies boosted market activity at some of Wall Street’s firms. However, their stock performance remained disappointing.

Amid ongoing uncertainty, particularly regarding US tariffs and the Fed's plans for further rate cuts, corporate guidance will play a key role in shaping investor confidence.