So far this month, the S&P 500 index has returned more than twice its long-term average return for July. Notably, the S&P 500 Equal Weight index, which gives equal importance to small and large companies alike, reached two all-time highs last week from none for this year. The index’s two largest sectors are industrials and financials, sectors that follow the ups and downs of the overall economy. When many stocks are participating in an uptrend, it usually means the uptrend is stronger.
Meanwhile, the recent US-EU trade deal, which includes a 15% tariff on European goods, should put pressure on Mexico and Canada to get deals done by the Friday deadline. However, negotiations may not be as straightforward: Canadian Prime Minister Carney said last week that Canada "will not accept a bad deal", and Trump said, “We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation."