July began with the One Big Beautiful Bill Act becoming law on July 4. The Trump administration has touted the bill’s pro-growth policies despite projections that its passage will add $3.4 trillion to the federal debt over 10 years, as scored by the Congressional Budget Office. Over the course of the month, tariffs remained at center stage with bilateral trade deals announced between the U.S. and Japan, European Union and South Korea. Additionally, the administration reiterated its intention to increase tariffs on countries with which it has not been able to strike a deal, in addition to strategic industries, starting Aug. 1. Despite continued tariff headlines, the market appeared to take solace in the reduction of uncertainty from Washington surrounding taxes, trade and fiscal policy, in addition to a better-than-expected company earnings season in the second quarter.
