Market Recap – Wednesday, July 9, 2025
Markets Bounce Back as Tech and Small Caps Lead, Tariff Concerns Loom
Stocks finished higher today, with the Dow, S&P 500, Nasdaq, and Russell 2000 all ending the day in the green. This helped trim some of the losses from earlier in the week, with the S&P 500 and Nasdaq only slightly lower for the week. Big tech stocks, including Nvidia, saw strong gains, with Nvidia hitting a $4 trillion market cap for the first time. Other sectors, including semiconductors, homebuilders, and pharmaceuticals, also did well. Meanwhile, China tech, managed care, and energy stocks lagged behind. Bitcoin futures hit a new high, while oil prices edged up by 0.6%.
Key Market Developments:
Today’s trading lacked major headlines but was influenced by ongoing tariff concerns and a stronger-than-expected auction for 10-year Treasury notes. Trade headlines revolved around President Trump’s latest tariff threats, including a 50% tariff on copper and a possible 200% tariff on pharmaceuticals, though these are set to take effect later. The Federal Reserve’s recent meeting minutes showed that some officials are open to cutting interest rates soon, but others are cautious, citing ongoing inflation risks. Meanwhile, investors continue to keep an eye on mergers and acquisitions, as well as earnings expectations ahead of the unofficial start of Q2 earnings season next week.
Notable Gainers:
Rhythm Pharmaceuticals (RYTM): +36.6%, after announcing positive clinical trial results for its weight-loss treatment.
Verona Pharma (VRNA): +20.6%, following news that it will be acquired by Merck for $10 billion, representing a 23% premium to its previous close.
AES Corp. (AES): +19.8%, after reports that the company is exploring strategic options amid takeover interest.
ProKidney (PROK): +16.4%, after reporting positive results from a clinical trial.
Notable Decliners:
RxSight (RXST): -37.8%, after revising its revenue guidance down significantly for the second quarter.
WPP Group (WPP): -18.1%, after cutting its revenue forecast for the year due to macroeconomic challenges.
Mobileye Global (MBLY): -7.1%, following the announcement of a stock offering.
Monster Beverage (MNST): -3.3%, after being downgraded due to rising aluminum costs.
Here's Our Take
The market saw a solid rebound today, with big tech and some smaller sectors leading the way. However, the broader market still faces uncertainty, particularly with ongoing tariff concerns. President Trump's latest moves on tariffs, including a proposed 50% copper tariff and potential future levies on pharmaceuticals, continue to add tension to trade talks. Despite this, some positive momentum was seen in sectors like semiconductors and pharmaceuticals. As we head into earnings season next week, attention will shift toward how companies perform in this uncertain economic environment, especially with the ongoing debate about interest rates and the future direction of the Fed.
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