Market Recap – Friday, July 11, 2025
Stocks Slip as Tariff Concerns Weigh on Market | Bitcoin Hits New Record
Stocks finished lower today, with the Dow down 0.63%, the S&P 500 down 0.33%, and the Nasdaq down 0.22%. The Russell 2000, which tracks smaller companies, took the biggest hit, falling 1.26%. The drop came after fresh record highs in the S&P 500 and Nasdaq earlier this week. The worst-performing sectors included airlines, casinos, homebuilders, and chemicals, while energy, precious metals, and some consumer staples like Kraft Heinz showed strong performance. Big tech stocks were mixed, with Tesla showing strength amid news about its robotaxi expansion. Bitcoin hit a new record, surpassing $118,000.
Key Market Developments:
There was not much new market news today, but tariff talk continued to hover over the market. President Trump announced new tariffs, including a 35% tariff on Canada and 50% on copper, which added uncertainty to trade relations. While tariffs are a major theme, the market is also keeping an eye on potential off-ramps, especially after the recent delay in the reciprocal tariff deadline. Yields on government bonds continued to rise, reflecting growing concerns about fiscal issues and macroeconomic resilience. In terms of earnings, the unofficial start of Q2 earnings season is next week, with big banks leading the charge. Also, economic data showed a slight improvement in jobless claims, but continuing claims rose to their highest levels since November 2021, signaling some weakness in the labor market.
Notable Gainers:
Red Cat Holdings (RCAT): +26.4%, after the Pentagon ordered the fast-tracking of drone production and deployment, benefiting companies like Red Cat.
AMC Entertainment (AMC): +11.0%, after being upgraded due to expectations for more consistent box office results.
PriceSmart (PSMT): +5.3%, after reporting better-than-expected Q3 earnings and highlighting strong growth in net sales.
Kraft Heinz (KHC): +2.5%, after reports that the company is exploring a spin-off of its grocery business, potentially valued at $20 billion.
Notable Decliners:
Capricor Therapeutics (CAPR): -33.0%, after its treatment for Duchenne muscular dystrophy failed to meet FDA approval requirements.
Oscar Health (OSCR): -7.4%, after being downgraded due to concerns about increasing health insurance exchange costs.
PayPal (PYPL): -5.7%, after it was reported that the company plans to charge fees for fintech firms accessing its customer data.
Albemarle (ALB): -4.6%, after being downgraded due to concerns over an oversupply of lithium, which could affect its future growth.
Here's Our Take
The market saw a bit of a pullback today after strong performance earlier in the week. The tariff news from President Trump continues to weigh on investor sentiment, but the market’s attention remains focused on the potential for trade deal resolutions and the start of Q2 earnings season next week. As we approach earnings reports, expectations are tempered by the ongoing tariff impact, but there’s optimism that corporate earnings will remain resilient. The market is also watching bond yields and fiscal concerns, as well as inflation data next week, which will provide more clarity on the macroeconomic environment. Overall, the market seems to be in a wait-and-see mode ahead of upcoming economic data and earnings reports.
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