Market Review: July 01, 2025
Closing Recap
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | 400.17 | 0.91% | 44,494 |
| S&P 500 | -6.94 | 0.11% | 6,198 |
| Nasdaq | -166.85 | 0.82% | 20,202 |
| Russell 2000 | 20.43 | 0.94% | 2,195 |
Market Overview
U.S. stocks ended the day mixed, with a notable rally in small-cap stocks as the Russell 2000 surged, while the tech-heavy Nasdaq lagged behind. The NYSE showed strong breadth, with advancers outpacing decliners by a margin of more than 3:1. Key sectors leading the charge included Materials, Healthcare, and Consumer Staples, all rising over 1%. In contrast, Technology and Communications sectors were the only ones to close in the red.
Major tech stocks, including NVDA, TSLA, META, MSFT, and GOOGL, experienced weakness as investors rotated out of large-cap tech into defensive sectors such as food, REITs, transports, homebuilders, and pharmaceuticals. The market saw some late-day dips following comments from President Trump regarding trade negotiations with Japan and tariffs, which added to market uncertainty.
Legislative Developments
The Senate passed President Trump's tax and spending bill with a narrow 51-50 vote, setting the stage for a final vote in the House. The bill includes significant cuts to Medicaid, which faced opposition from healthcare professionals, but also favorable provisions for the solar sector.
Economic Data
Mixed economic data was released, with the May JOLTS report showing job openings at 7.769 million, exceeding expectations. The S&P Manufacturing PMI reached its highest level since May 2022 at 52.9. However, construction spending showed a slight decline, and the ISM manufacturing index indicated a contraction in manufacturing activity.
Commodities and Currencies
The U.S. dollar initially weakened but rebounded later in the day. Commodity prices generally rose, with gold prices increasing by 1.27% and crude oil prices also seeing modest gains. The dollar fell to a 10-year low against the Swedish franc and dropped against the yen before recovering.
Sector Highlights
Autos
Monthly auto sales data showed strong performance from major manufacturers, with BYD, Ford, and GM reporting significant increases in vehicle deliveries.
Retail and Consumer Staples
Nike received an upgrade from Argus, while Hasbro was upgraded by Goldman Sachs due to strong demand for its products.
Casinos and Gaming
Casino stocks surged following positive revenue data from Macau, with notable gains for companies like WYNN and MLCO.
Energy
Solar stocks rebounded after favorable legislative changes, while oil and gas companies saw mixed performance.
Healthcare
Home health providers faced challenges due to proposed cuts in Medicare payments, impacting stocks in the sector.
Conclusion
The market's mixed performance reflects ongoing uncertainties in trade, economic data, and legislative developments. Investors are closely monitoring upcoming job data and sector-specific news as they navigate the current landscape.