Market Recap - Monday, July 21, 2025
Mixed Results Amid Quiet Trading
Stocks ended mixed on Monday, with the S&P 500 and Nasdaq hitting new record highs, while the Dow and Russell 2000 closed lower. The market was relatively uneventful, with little to drive significant movement. However, big tech stocks, including Google (GOOGL), Amazon (AMZN), and Meta (META), were notable outperformers. Meanwhile, sectors like energy, pharma, and biotech underperformed. In the commodities space, oil prices fell slightly, while gold posted gains. Bitcoin futures ended lower.
Key Market Developments:
Economic Data: The June retail sales report showed better-than-expected growth, rising 0.6% month-over-month. Consumer sentiment also improved slightly, with inflation expectations declining.
Trade Talks: Trade negotiations between the US and the EU are heating up, as the August 1st deadline approaches for implementing 30% tariffs on EU goods. The US is pushing for a broader tariff structure, with the EU preparing retaliatory measures.
Fed Watch: There were no major updates from the Fed, but Governor Waller continued to advocate for a rate cut. Investors are closely watching how trade tensions and economic data will influence the Fed's next move.
Notable Gainers:
Cleveland-Cliffs (CLF): +12.5% – The company reported strong earnings, with record steel volumes and improved cost performance.
Block, Inc. (XYZ): +7.2% – The company will be added to the S&P 500, driving its stock price up.
Verizon Communications (VZ): +4.0% – Beat earnings expectations and raised its full-year guidance for free cash flow.
Notable Decliners:
Bruker (BRKR): -12.1% – Missed earnings expectations due to weak demand in the academic and biopharma sectors.
Sarepta Therapeutics (SRPT): -5.4% – The FDA placed the company’s trials on clinical hold, causing its stock to drop.
Here's Our Take:
The market saw mixed results today, with big tech stocks driving the S&P 500 and Nasdaq higher, while other sectors struggled. While there is optimism around strong earnings and consumer sentiment, trade talks between the US and the EU remain a major concern, as tariffs are set to rise if no deal is reached by August 1st. The market is still digesting the ongoing trade uncertainties and the potential impact on inflation and corporate profits. With a relatively quiet week ahead, all eyes will remain on the upcoming economic data and how it might shape Fed policy and the broader market outlook.
P.S. Know someone who'd appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com