Wall Street holds near its record amid doubts about Trump's tariffs

NEW YORK (AP) — U.S. stock indexes hung near their records on Monday following President Donald Trump’s latest updates to his tariffs, as speculation continues on Wall Street that he may ultimately back down on them.

The S&P 500 edged up by 0.1% to pull within 0.2% of its all-time high set on Thursday. The Dow Jones Industrial Average added 88 points, or 0.2%, and the Nasdaq composite climbed 0.3% to set a record.

Stock indexes elsewhere around the world were mixed in their first trading after Trump announced plans over the weekend for 30% tariffs on goods from Mexico and the European Union. They won’t take effect until Aug. 1, the same deadline that Trump announced last week for updated tax rates on imports from Japan, South Korea and a dozen other countries.

The latest postponements for Trump’s tariffs allow more time for him to reach trade deals with other countries that could lower the tariff rates and prevent pain for international trade. They also feed into speculation that Trump may ultimately back down on his tariffs if they end up creating too much damage for the economy and for financial markets.

If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt U.S. voters but also raise the pressure on the U.S. government’s debt level relative to the economy’s size, particularly after Washington approved big tax cuts that will add to the deficit.

“We therefore believe that the administration is using this latest round of tariff escalation to maximize its negotiating leverage and that it will ultimately de-escalate, especially if there is a new bout of heightened bond and stock market volatility,” according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management.

“As usual, there are many conditions and clauses that can get these rates reduced,” said Brian Jacobsen, chief economist at Annex Wealth Management. “That’s probably why the market might not like the tariff talk, but it’s not panicking about it either.”

For the time being, all the uncertainty around tariffs could help keep markets unsteady. This upcoming week has several potential flashpoints that could shake things.

On Tuesday will come the latest reading on inflation across the United States. Economists expect it to show inflation accelerated to 2.6% last month from 2.4% in May.

Companies are also lining up to report how they performed during the spring. JPMorgan Chase and several other huge banks will report their latest quarterly results on Tuesday, followed by Johnson & Johnson on Wednesday and PepsiCo on Thursday.

Fastenal, a distributor of industrial and construction supplies, on Monday reported a stronger profit for the latest quarter than analysts expected. Its stock rose 4.2%, though it also said that market conditions remain sluggish.

Shares of Kenvue rose 2.2% after the former division of Johnson & Johnson said CEO Thibaut Mongon is stepping down. Kenvue, the maker of Listerine and Band-Aid brands, is in the midst of a strategic review of its options, “including ways to simplify the company’s portfolio and how it operates,” according to Larry Merlo, the board’s chair.

Waters slumped 13.8% after saying it had agreed to merge with Becton, Dickinson and Co.’s biosciences and diagnostic solutions business in a deal valued at roughly $17.5 billion.

All told, the S&P 500 rose 8.81 points to 6,268.56. The Dow Jones Industrial Average added 88.14 to 44,459.65, and the Nasdaq composite climbed 54.80 to 20,640.33 to top its last all-time high set on Thursday.

In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury slipped to 4.42% from 4.43% late Friday.

In stock markets abroad, indexes fell across much of Europe. Germany’s DAX lost 0.4%, and France’s CAC 40 fell 0.3%. But indexes rose 0.8% in South Korea and 0.3% in Hong Kong.

Chinese shares advanced after the government reported that exports rose last month as a truce in a tariff war prompted a surge in orders ahead of the Aug. 1 deadline for reaching a new trade deal with Washington.

Some of the biggest moves in financial markets were for crypto, where bitcoin continues to set records. This upcoming week is “Crypto Week” in Washington, where Congress will consider several bills to “make America the crypto capital of the world.”

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Dilip Patel laughs while working on the floor at the New York Stock Exchange in New York, Monday, July 14, 2025. (AP Photo/Seth Wenig)

Robert Greason works on the floor at the New York Stock Exchange in New York, Monday, July 14, 2025. (AP Photo/Seth Wenig)

Fredrico DeMarco works on the floor at the New York Stock Exchange in New York, Monday, July 14, 2025. (AP Photo/Seth Wenig)

Trader John Bowers works on the floor of the New York Stock Exchange, Tuesday, July 8, 2025. (AP Photo/Richard Drew)

Specialist Dilip Patel works on the floor of the New York Stock Exchange, Tuesday, July 8, 2025. (AP Photo/Richard Drew)

Options trader Justin Kanda, right, works on the floor of the New York Stock Exchange, Tuesday, July 8, 2025. (AP Photo/Richard Drew)

A reflection of a window shows the New York Stock Exchange on Monday, June 30, 2025, in New York. (AP Photo/Yuki Iwamura)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, July 14, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei and New York Dow indexes at a securities firm Monday, July 14, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, July 14, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, July 14, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

Veteran Australia batter Usman Khawaja has announced he will retire from international cricket after the fifth Ashes test beginning Sunday at the Sydney Cricket Ground.

He didn't go quietly.

The Pakistan-born Khawaja, who was the first Muslim to play for Australia, used his retirement announcement Friday to criticize the “racial" stereotyping he experienced during his career.

It will be the 39-year-old Khawaja's 88th and final test — played at the ground where he began his first-class career. Khawaja scored his first Ashes century at the SCG with 171 against England in 2018.

It was also at that the SCG where he revived his career at age 35, scoring two centuries against England. That prompted one of the great late-career revivals, as Khawaja hit seven centuries in his next two years back in the side.

But Khawaja’s position had come under scrutiny and criticism this season after being unable to open in the first Ashes test in Perth due to back spasms and then missing the Brisbane test with the injury.

He was then initially left out in Adelaide until Steve Smith’s vertigo allowed Khawaja to return, before an 82 in the first innings there ensured he would stay in the side for the fourth test in Melbourne. Australia, with a 3-1 lead going into the fifth test, has retained the Ashes.

Khawaja said he felt he was treated “a little bit different, even to now,” because of his Pakistan and Muslim background.

"Different in the way I’ve been treated, different in how things have happened,” he said at a media conference in Sydney. “I had back spasms, it was something I couldn’t control. The way the media and the past players came out and attacked me . . . I copped it for about five days straight. Everyone was piling in.

“Once the racial stereotypes came in, of me being lazy, it was things I’ve dealt with my whole life. Pakistani, West Indian, colored players...we’re selfish, we only care about ourselves, we don’t care about the team, we don’t train hard enough."

Khawaja said he knew the end of his career was imminent.

“I guess moving into this series, I had an inkling this would be the last series," he said. "I’m glad I can go out on my own terms.”

Khawaja has scored 6,206 runs at an average of 43.49 in his 87 tests with 16 centuries and 28 half-centuries.

“Usman has made a huge contribution to Australian cricket both through his outstanding achievements as one of our most stylish and resilient batters . . . and off field, particularly through the Usman Khawaja Foundation,” Cricket Australia chief executive Todd Greenberg said in a statement.

“Usman has been one of Australia’s most reliable opening batters and testament to his success was him being named ICC test cricketer of the year the same season that Australia won the World Test Championship (in 2023).”

Khawaja said his No. 1 emotion on announcing his retirement was “contentment.”

“I’m very lucky to have played so many games for Australia the way I have,” Khawaja said. "I hope I have inspired people along the way.”

AP cricket: https://apnews.com/hub/cricket

Australian cricketer Usman Khawaja with his wife Rachel and daughters Aisha and Ayla after announcing that he will retire from international cricket following the fifth and final Ashes cricket test between England and Australia in Sydney, Australia, Friday, Jan. 2, 2026. (AP Photo/Mark Baker)

Australia Usman Khawaja, centre, sits with teammates after announcing he will retire from international cricket following the fifth and final Ashes cricket test between England and Australia in Sydney, Australia, Friday, Jan. 2, 2026. (AP Photo/Mark Baker)

Australia Usman Khawaja warms up during a practice session ahead of the fifth and final Ashes cricket test between England and Australia in Sydney, Australia, Friday, Jan. 2, 2026. (AP Photo/Mark Baker)

Australia's Travis Head, right, is congratulated by teammate Usman Khawaja after reaching 50 runs during play on day three of the third Ashes cricket test between England and Australia in Adelaide, Australia, Friday, Dec. 19, 2025. (AP Photo/James Elsby)

Australia's Usman Khawaja sign autograph to fans after they won the third Ashes cricket test match against England in Adelaide, Australia, Sunday, Dec. 21, 2025 (AP Photo/James Elsby)