Market Recap – Tuesday, July 8, 2025
Markets Mixed as Trade Tensions Escalate and Earnings Season Kicks Off
Stocks finished the day mixed, with the Dow and S&P 500 slightly lower, while the Nasdaq and Russell 2000 saw modest gains. The market was choppy and lacked clear direction. Many of the large banks, insurance companies, and exchanges underperformed, while smaller companies, energy stocks, and pharmaceuticals performed better. Big tech stocks were mixed, with some stocks showing small gains and others experiencing slight declines. Oil prices rose by 0.6%, while Bitcoin futures gained 0.7%, and gold saw a small dip.
Key Market Developments:
Today was fairly quiet in terms of major market drivers, but trade tensions remained a central focus. President Trump made headlines by announcing a 50% tariff on copper, which caused copper futures to spike. He also hinted at imposing a massive 200% tariff on pharmaceuticals and additional tariffs on semiconductors. The deadline for the tariff negotiations has been extended to August 1, though Trump stressed that no further extensions will be allowed. In other news, earnings season is starting to heat up, and markets are adjusting expectations for corporate profits, with many strategists raising their year-end targets for the S&P 500.
Economic Data:
There wasn't much economic data released today, but the NFIB small business optimism index showed a slight decline in June. The main concerns for small businesses continue to be taxes and labor costs. A survey from the New York Fed showed that inflation expectations ticked down slightly, with consumers predicting lower inflation in the short-term. Additionally, there was a slight improvement in consumers’ outlook on employment and spending.
Notable Gainers:
GlobalFoundries (GFS): +7.0%, after announcing plans to acquire MIPS, a key supplier of AI and processor IP.
EYE-US (National Vision Holdings): +6.0%, after being upgraded to overweight by Barclays due to strong transformation efforts.
Merit Medical Systems (MMSI): +4.6%, following the announcement of a new CEO, with positive early feedback on the company’s future direction.
TopBuild (BLD): +3.8%, after announcing plans to acquire Progressive Roofing in a cash deal worth $810 million.
Notable Decliners:
First Solar (FSLR): -6.5%, after Trump issued an executive order ending subsidies for foreign-controlled energy sources.
Datadog (DDOG): -4.5%, after being downgraded to "sell" by Guggenheim due to concerns that a major client, OpenAI, may shift to an in-house solution.
Hershey (HSY): -3.2%, after the announcement of a new CEO following Michele Buck's departure.
Here's Our Take
Today’s market was quieter than usual, with little major news to drive movement. Trade concerns, particularly around President Trump’s aggressive tariff plans, weighed on some sectors like copper and pharmaceuticals, while small-cap stocks and energy showed relative strength. The market is still digesting the impact of the recent tariff announcements and the extension of the deadline for trade negotiations. Earnings season is just starting, and while there’s some optimism about the resilience of large companies, we might see slower earnings growth this quarter. All eyes will remain on trade talks and how they will affect corporate profits as the month progresses.
P.S. Know someone who'd appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com