Market Review: July 07, 2025
Closing Recap
U.S. stocks finished notably lower for the first time in a while, with the S&P down a little less than 1% from record closing highs. The day was dominated by trade and tariff headlines ahead of the expected July 9th deadline initially set by the White House. The S&P posted its biggest one-day percentage decline since mid-June as markets await several tariff headlines in the coming days.
Market Indices Performance
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | -422.17 | 0.94% | 44,406 |
| S&P 500 | -49.37 | 0.79% | 6,229 |
| Nasdaq | -188.59 | 0.92% | 20,412 |
| Russell 2000 | -34.80 | 1.55% | 2,214 |
Key Market Drivers
President Trump announced that the U.S. will impose 25% tariffs on imports from Japan and South Korea starting August 1, extending the deadline for negotiations. This news, along with other tariff hikes on Malaysia, Kazakhstan, South Africa, Laos, and Myanmar, contributed to the market's decline.
Commodities, Currencies & Treasuries
WTI crude oil futures settled at $67.93/bbl, up 1.39%, while Brent crude settled at $69.58/bbl, up 1.87%. Gold prices were little changed at $3,342.80 an ounce. The U.S. dollar strengthened by 0.45% against a basket of major currencies, and Treasury yields rose, with the 10-year note around 4.4%.
Macro Overview
| Commodity/Currency | Change | Last |
|---|---|---|
| WTI Crude | +0.93 | 67.93 |
| Brent | +1.28 | 69.58 |
| Gold | -0.10 | 3,342.80 |
| EUR/USD | -0.0069 | 1.1709 |
| JPY/USD | +1.62 | 146.16 |
| 10-Year Note | +0.057 | 4.397% |
Sector News Breakdown
Autos, Leisure, Gaming & Lodging
TSLA shares fell after CEO Elon Musk announced the formation of the America Party. In the gaming sector, Goldman Sachs initiated coverage on several casino stocks, favoring those with high-quality assets and strong cash flow generation.
Energy
UBS sees the OPEC+ August production hike as a positive for U.S. independent refiners. Major oil stocks slipped after SHEL warned of lower-than-expected profits from trading gas and chemicals.
Biotech & Pharma
APGE reported positive results for its experimental drug for atopic dermatitis, while COGT shares rose after announcing positive trial results. Conversely, HIMS shares slipped due to cautious revenue forecasts.
Conclusion
The market's decline on July 7, 2025, was primarily driven by tariff announcements and trade tensions, with significant movements in commodities and sector-specific developments influencing investor sentiment.