Erik Boekel

The U.S. market continues to walk a tightrope between political uncertainty and corporate earnings. The Nasdaq remains near a record high. Yet sentiment remains clouded by concerns over political interference in monetary policy after reports emerged that President Trump was contemplating the removal of Federal Reserve Chair Jerome Powell, although Trump later downplayed this possibility. As a result, any formal move against Fed Chair Powell could fuel significant volatility across global markets, impacting Treasury yields, the dollar and broader financial stability due to the importance of central bank independence to investor confidence and risk appetite. The market could also remain exposed to any developments in US trade policy as the deadline of August 1st approaches. New trade deals could help the market reach new highs, while any setbacks could drive volatility and potential corrections.

Meanwhile, the second-quarter earnings season started with strong results from major banks setting an optimistic tone. Investors are focused on how companies will navigate the tariff headwinds. Earnings growth is expected to decelerate from the previous quarter, reflecting concerns over persistent cost pressures and trade uncertainties. Heavyweight firms such as General Electric and Netflix are preparing to release their earnings today and others like Apple, Meta or Alphabet are expected later this month. While some companies have surpassed expectations, supporting the market, macroeconomic and geopolitical risks remain important headwinds.

Boekel is Chief Commercial Officer at DHF Capital