Market Recap – Thursday, July 10, 2025
Stocks Gain as Trade Concerns Ease, AI Momentum Drives Market Leadership
Stocks ended higher today, with the Dow rising 0.43%, the S&P 500 up 0.27%, and the Nasdaq inching up by 0.09%. The Russell 2000, which tracks smaller companies, gained 0.48%. The market was a bit mixed, but overall, the positive performance helped recover some of the earlier week’s losses, with the S&P 500 and Nasdaq still close to their record highs. The best-performing sectors included airlines, industrial metals, homebuilders, biotech, and banks, while big tech stocks like Tesla showed notable strength amid news of its plans for robotaxis. On the downside, software companies, managed care, and energy stocks underperformed. Bitcoin futures reached a new record, climbing 1.3%, while oil prices dropped by 2.6%.
Key Market Developments:
It was a quiet session with few major news drivers, but trade concerns remained in focus. President Trump announced a 50% tariff on copper and confirmed that the tariffs on Brazil would go into effect on August 1. While these announcements created some turbulence, the market seemed more focused on potential "off-ramps" for trade policy, especially after the recent extension of the reciprocal tariff deadline. The AI boom continued to play a major role in market movements, with Nvidia hitting a $4 trillion market cap, signaling strong investor interest in the sector. Investors also kept an eye on earnings season, which kicks off next week, with big banks set to report their quarterly results. In economic news, initial jobless claims were better than expected, showing some resilience in the labor market, but continuing claims rose to their highest level since November 2021.
Notable Gainers:
MP Materials (MP): +50.6%, after announcing a partnership with the Department of Defense to boost US rare earth magnet production.
Kellogg (KLG): +30.6%, after confirming its acquisition by the Ferrero Group for $3.1 billion.
Delta Air Lines (DAL): +12.0%, after reporting better-than-expected Q2 earnings and raising its guidance for Q3.
Estée Lauder (EL): +6.3%, after being upgraded to a buy rating by BofA, with optimism around the company’s Asia recovery.
Notable Decliners:
Ultragenyx Pharmaceutical (RARE): -25.1%, after disappointing trial results for one of its treatments.
Helen of Troy (HELE): -22.7%, following a big fiscal Q1 miss and weaker-than-expected guidance for the rest of the year.
Bloom Energy (BE): -10.0%, after the company announced plans to sell 10 million shares at a discounted price.
Here's Our Take
The market showed a bit of strength today, with the S&P 500 and Nasdaq holding near record levels, driven by gains in sectors like airlines, biotech, and industrials. While trade tensions remain a key concern, the market seems more focused on the potential for easing tariff pressures, especially with the extended deadline for reciprocal tariff talks. The AI sector continues to lead the charge, particularly with Nvidia’s impressive performance. As earnings season begins next week, the market will be looking for signs of strength or weakness, especially as expectations for Q2 corporate profits have been lowered. For now, investors are staying optimistic, with the lower volatility backdrop and favorable technical dynamics helping support the market.
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