US Stocks Hit All-Time Highs Despite Looming Tariff Threats

Stocks hit fresh all-time highs even as President Trump's threatened tariffs loom over the economy.

• Economic resilience: Inflation rose 2.7% in June and the unemployment rate remains at 4.1%, underscoring a labor market that continues to expand.

• Earnings surprise: Major companies, from Alphabet to Netflix, have topped expectations, with executives in some cases raising their outlooks.

• Tariff rollbacks: A series of tariff delays and reductions—coined the "TACO trade"—has tempered initial market alarm, though commerce with China, Canada, Mexico and the EU remains unsettled.

Despite the rally, analysts warn that higher average tariffs (at 1930s highs), persistent Fed scrutiny and lofty valuations could still trigger a pullback.

Investors seeking regular income amid market volatility are turning to high-yield names favored by top Wall Street analysts. EOG Resources (EOG) recently boosted its quarterly dividend to $1.02, translating to a 3.4% yield, after acquiring Encino Acquisition Partners for $5.6 billion. Siebert Williams Shank's Gabriele Sorbara reiterated a buy rating with a $155 target, citing strong free cash flow and Utica shale expansion catalysts ahead of EOG's Aug. 8 earnings call.

Energy infrastructure provider Williams Companies (WMB) pays a 3.5% dividend, with RBC Capital's Elvira Scotto reaffirming a buy and a $63 target despite modest Q2 headwinds from seasonality and commodity-price shifts. In telecom, Verizon (VZ) yields 6.3%, having raised its guidance on robust premium-plan demand and tax changes; Citi's Michael Rollins kept a buy rating, forecasting $48 per share while trimming subscriber-growth forecasts.

Stocks have climbed sharply since an early-April tariff scare, setting the stage for a pivotal week of levies and corporate results. After slumping on President Trump's initial tariff proposal, the S&P 500 has rebounded 32% and notched five straight record closes as April's worst levels proved a buying opportunity. This week, some 843 companies—including Microsoft, Meta, Amazon and Apple—will report second-quarter results just as new 15% import duties kick in, signaling a critical test of markets' resilience and earnings momentum.