Market Review: July 09, 2025
Closing Recap
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | 217.54 | 0.49% | 44,458 |
| S&P 500 | 37.74 | 0.61% | 6,263 |
| Nasdaq | 192.87 | 0.94% | 20,611 |
| Russell 2000 | 23.75 | 1.07% | 2,252 |
Market Overview
U.S. stocks opened higher and maintained an upward trajectory throughout the day, buoyed by a strong bond auction, new trade/tariff developments, and insights from the June FOMC meeting. Treasury yields fell for the first time in over a week, with the 10-year yield decreasing by 7 basis points to 4.34%, supported by a robust U.S. Treasury auction.
In notable stock news, Nvidia became the first public company to reach a $4 trillion market cap, surpassing Microsoft and Apple, although chip stocks exhibited mixed performance. Consumer Staples and Energy sectors lagged, while Utilities, Technology, and Industrials sectors led the gains. Retail data indicated a significant 41% drop in Amazon's "Prime Day" sales on the first day of the event.
Trade and Tariff Updates
President Trump announced increased tariffs on several countries, effective August 1st, including a 25% tariff on Brunei and Moldova, a 20% tariff on the Philippines, and a 30% tariff on Algeria, Iraq, Libya, and Sri Lanka. This brings the total number of countries facing higher tariffs to 21.
FOMC Meeting Insights
According to Nick Timiraos from the WSJ, the minutes from the June FOMC meeting revealed a division among officials regarding interest rate cuts. The majority favored cuts later in the year, while some suggested no cuts for the remainder of 2025. The minutes indicated that inflation risks remain significant, with several participants noting that the current federal funds rate may not be far above its neutral level.
Economic Data
Wholesale inventories for May remained unchanged at -0.3%, aligning with consensus expectations. The U.S. mortgage market index rose by 9.4% in the week ending July 4, with a slight decrease in the average 30-year mortgage rate to 6.77%.
China's CPI inflation rebounded to 0.1% YoY in June, with core CPI reaching a 14-month high of 0.7% YoY, indicating resilience in services and consumer goods inflation.
Commodities and Currencies
Gold prices increased by $4.10 to settle at $3,321 per ounce, while oil prices remained stable with WTI crude rising slightly to $68.38 per barrel. The U.S. dollar index saw a minor increase, and Bitcoin surged to an all-time high of $111,750, reflecting strong market sentiment.
Sector News Breakdown
Retail and Consumer Staples
PVH was downgraded to Hold due to rising inventory and tariff impacts. Meanwhile, luxury stocks like TPR and RL reached 52-week highs.
Energy and Utilities
AES shares rose amid potential takeover interest, while BE shares advanced after an upgrade. EOG was downgraded due to concerns over global oil prices.
Healthcare
Merck announced an agreement to acquire Verona for approximately $10 billion, aiming to bolster its portfolio in chronic obstructive pulmonary disease treatments.
Technology
Microsoft was upgraded as investors focus on its AI revenue growth, while Nvidia's stock reached new heights amid ongoing AI momentum.
Conclusion
The market exhibited a positive trend on July 9, 2025, driven by favorable economic data, strong corporate performances, and ongoing developments in trade policies. Investors remain optimistic as they navigate through the evolving economic landscape.