“Record highs and a low VIX signals markets have already priced in perfection — a soft landing and a clean unwind of tariff risks — which feels wildly out of sync with the real-world picture,” said Hebe Chen, an analyst at Vantage Markets in Sydney. “A pullback is very much on the table, with the S&P 500 glued to overbought territory,” she said.

US stock futures dipped as Trump expanded tariffs to 14 more countries and delayed the “reciprocal” tariff deadline to August 1

Wall Street reacts to Trump’s new tariff threats against the EU and Mexico. Discover the latest market impacts and analysis.

With the tariffs set to kick in now on Aug. 1, the latest move by the White House amounts to essentially a four-week extension of its previous 90-day pause, wrote Tobin Marcus, an analyst at Wolfe Research.

A Deutsche Bank survey is asking investors what they're looking for on July 9, when a pause on the so-called reciprocal tariffs announced by President Donald Trump on April 2 is due to expire. Trump on Tuesday said he had no intention to extend the pause.

US inflation heated back up in June, rising to its highest level in four months, as price increases — including those from tariffs — packed a bigger punch.