U.S. markets opened this week with the S&P 500 and Nasdaq setting fresh records on the back of robust Q2 earnings, notably from Microsoft and Meta.

Momentum faded mid-week when a hotter-than-expected inflation reading postponed prospects for a September Federal Reserve rate cut. Additional headwinds emerged after Washington imposed new tariffs on copper and other goods from Mexico, Canada, India, and South Korea. By Friday, the mix of sticky inflation, hawkish Fed commentary, and renewed trade friction had cooled earlier optimism.

Looking ahead, more than 160 S&P 500 companies, including Apple and Amazon, are scheduled to report results next week. Mid-week attention will turn to Federal Reserve Chair Jerome Powell’s comments for signals on the timing of potential rate cuts amid persistent inflation pressures. Key data releases include the U.S. trade balance, durable goods orders, services PMI, and the PCE price index — the Fed’s preferred inflation gauge — alongside ongoing geopolitical trade developments.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.