Market Summary - July 11, 2025
On July 11, 2025, the financial markets exhibited a mix of cautious optimism and uncertainty. Here are the key highlights from the day:
Bitcoin Reaches New All-Time High
Bitcoin surged to a new all-time high of $118,000, driven by positive sentiment in the cryptocurrency market. The demand for Bitcoin was notably boosted by significant inflows into U.S. Bitcoin ETFs, particularly BlackRock's IBIT, which recorded over $1 billion in net inflows.
Wall Street's Mixed Signals
Despite major indices remaining near record highs, Wall Street showed signs of caution as investors awaited details on potential tariff changes between the U.S. and the EU. The U.S. Dollar Index (USDIDX) increased by nearly 0.25%, while the EUR/USD pair dipped slightly by 0.11%, trading just below 1.170.
Sector Performances
Technology and Consumer Goods
Shares of major tech companies like Nvidia, Amazon, and Alphabet supported positive sentiment on the Nasdaq 100. Additionally, Levi Strauss saw its stock climb following a strong quarterly earnings report, highlighting robust growth in direct-to-consumer and organic sales.
Defense Sector Gains
Drone manufacturers, including AeroVironment and Kratos Defense, experienced strong gains due to a revised U.S. Department of Defense strategy that emphasizes unmanned systems.
Currency Movements
The Canadian dollar rallied sharply against the U.S. dollar after stronger-than-expected labor data increased the likelihood of a hawkish stance from the Bank of Canada. Interest rate swap markets adjusted expectations, now pricing in only an 18% chance of a rate cut this month, down from 27% prior to the jobs report.
Commodity Market Updates
Oil and Precious Metals
Oil prices surged more than 2% following the European Commission's proposal to lower the Russian oil price cap from $60 to around $50 per barrel as part of the 18th EU sanctions package. Precious metals also had a strong day, with silver jumping nearly 4% and gold gaining almost 1% amid ongoing tariff uncertainties.
Agricultural Commodities
The USDA WASDE report did not trigger significant volatility in agricultural commodities. While soybean and cotton ending stocks came in slightly above expectations, wheat futures continued to decline, falling nearly 2% despite the USDA showing slightly lower ending stocks than anticipated.
Conclusion
The day concluded with a mix of optimism in certain sectors, particularly in technology and commodities, while caution prevailed in the broader market as investors awaited further developments on trade policies and economic indicators.