Today the markets were buzzing with optimism. The Dow Jones Industrial Average soared by 312.08 points, a 0.78% increase. Shares in the automotive sector skyrocketed after President Donald Trump signaled that he may be open to modifying his draconian 25% auto tariffs. That stimulus provided a powerful tailwind that propelled historic appreciation in the market. This announcement immediately triggered a rally in stock prices of the big three automakers. Ford Motor was up as much as 4%, General Motors as much as 3.5%, and Stellantis as much as 5.6%.
So when investors heard Trump promise big infrastructure spending, they cheered… and drove the entire market up. The S&P 500 gained 0.79%, and the tech-heavy Nasdaq Composite jumped 0.64%. FHN Financial analysts told clients on Friday that the automotive sector’s performance was a major driver of the total market gains.
In his remarks, President Trump stated, “They need a little bit of time because they’re going to make [parts] here.” His stated desire to help save automotive manufacturers seems to have calmed investors’ fears for the auto industry’s future. Shares of the 6 largest automakers skyrocketed following his announcement on Monday, reflecting robust confidence in the market.
That bullish tone in the markets wasn’t limited to the auto industry. Bank of America just announced some very good first-quarter earnings—better than analysts predicted. The bank’s net interest income for the period was $14.6 billion, underscoring its staggering financial performance.
It wasn’t just Wells — other financial institutions announced stellar earnings in the last few days. Each one of JPMorgan Chase, Morgan Stanley, and Goldman Sachs beat first-quarter estimates. That success has restored some investor confidence in the banking sector.
American Airlines is running circles around their fellow airlines! Beginning January 2026, they will provide complimentary inflight Wi-Fi access to all members of their AAdvantage loyalty program. This strategic transition is sure to improve the customer experience and fortify brand fidelity with the business traveler segment of their customer base.
Investors will be hanging on the edge of their seats for United Airlines. The company is set to release its first-quarter earnings results on Tuesday after the market close. This announcement is expected to shed more light on the airline industry’s rebound after the pandemic.
Not surprisingly, technology stocks boomed after President Trump exempted smartphones, computers and other tech devices his own reciprocal tariffs—to the delight of investors and consumers alike. This increase happened with good news on the automotive and banking fronts. This narrowly-tailored exemption resulted in skyrocketing stock market valuations for large tech companies such as Apple and Dell.
As the week and July unfold, market participants will be watching for more clues about the direction of the economy and how companies are faring amid such challenges. Federal Reserve Governor Christopher Waller emphasized the importance of remaining open to various economic strategies, stating, “Just because it didn’t work out once does not mean you should never think that way again.”