Market Review: July 11, 2025
Closing Recap
U.S. stocks finished lower on July 11, 2025, with the S&P 500 and Dow Jones Industrials declining over the week, although they remain close to all-time highs. The market was heavily influenced by trade and tariff discussions, particularly following President Trump's announcement of increased tariffs on Canadian goods and potential blanket tariffs on other trading partners.
Market Indices Performance
| Index | Change (Points) | Change (%) | Last Value |
|---|---|---|---|
| DJ Industrials | -279.32 | -0.63% | 44,371 |
| S&P 500 | -20.81 | -0.33% | 6,259 |
| Nasdaq | -45.14 | -0.22% | 20,585 |
| Russell 2000 | -28.58 | -1.26% | 2,234 |
Key Market Drivers
The primary macroeconomic event was President Trump's announcement of a 35% tariff on Canadian imports, effective August, which is an increase from the previously announced 25%. Additionally, he suggested potential blanket tariffs of 15% to 20% on most trading partners. This follows a week of heightened tariffs on over 20 global trading partners, including Japan and South Korea, set to begin on August 1 if no agreements are reached.
Sector Performance
In sector news, energy stocks led the S&P, while materials and healthcare lagged. Notably, drone manufacturers saw a rally after regulatory changes were announced, and cryptocurrency stocks surged as Bitcoin reached a new record high above $118,000.
Economic Data
In economic news, U.S. gross customs duties revenue hit a record $27.2 billion in June, contributing to a federal budget surplus of $27 billion for the month. This increase in tariff receipts has been consistent over the past three months.
Commodities and Currencies
Gold prices rose, settling at $3,364.00 per ounce, while oil prices also increased, with WTI crude gaining 2.82% to $68.45 per barrel. The U.S. dollar strengthened against other currencies, influenced by the new tariff announcements.
Sector Highlights
Retail and Consumer Staples
In the food sector, PFGC attracted takeover interest from USFD, while KHC is considering breaking itself up. Retailer LEVI reported better-than-expected earnings, boosting its stock price.
Energy
BP announced it expects to record significant impairment charges, while the Baker Hughes rig count showed a continued decline in oil and gas rigs.
Biotech and Pharma
CAPR shares fell after the FDA declined to approve a key therapy, while KPTI announced workforce reductions.
Conclusion
The market's reaction to tariff announcements and economic data indicates a cautious outlook as investors brace for potential impacts on trade and corporate earnings in the coming weeks.