Market Recap – Tuesday, July 1, 2025
Tech Takes a Step Back as Other Sectors Lead the Charge
The stock market ended mostly higher on Tuesday. The Dow, Nasdaq, and Russell 2000 all had solid gains, while the S&P 500 saw a small increase. Value stocks (companies with lower stock prices relative to their earnings) did better than growth stocks (companies expected to grow faster). However, some of the biggest tech companies, like Tesla, Meta, and Nvidia, dropped in price. Overall, sectors like casinos, homebuilders, energy, and food & beverage did well, while tech companies, including semiconductor and software stocks, were weaker.
Shift in Sectors:
There was a shift in which sectors performed well. The tech sector, which had done great in the past few months, took a step back, while other sectors like biotech, banks, and industrials saw better performance. Small-cap stocks (smaller companies) and stocks that investors have been betting against also did well.
Economic and Policy Updates:
Some economic reports showed mixed results. The manufacturing industry is still struggling, but it’s slowing down less than before. Job openings in the US were higher than expected, showing that many companies are still looking to hire despite the tough economy.
In Washington, President Trump’s $3.3 trillion tax and spending bill passed the Senate, but it still needs to be approved by the House of Representatives. There are some disagreements over parts of the bill, but it’s expected to move forward. On trade, Trump’s tariffs on Japan are still a big issue, and he warned of potential high tariffs if no deal is made soon.
Fed & Inflation Outlook:
At an international meeting, US Federal Reserve Chair Jerome Powell said inflation is still a concern, but he didn't rule out interest rate cuts later this year, depending on how the economy performs. However, his comments didn’t have much impact on the markets today.
Commodities and Crypto:
In the world of commodities, oil prices went up slightly, and gold saw a solid increase. Bitcoin prices fell a bit. The US dollar weakened slightly, and bond prices also showed some weakness.
Big Winners:
Wolfspeed (WOLF): +98.1% after the company filed for bankruptcy protection but plans to come back by the end of the year.
Las Vegas Sands (LVS): +8.9% thanks to strong gambling results from Macau.
Packaging Corp (PKG): +7.6% after announcing a big deal to buy another company’s business.
Big Losers:
Tesla (TSLA): -5.3% after a social media post from Trump and concerns that the company might report lower-than-expected deliveries.
Warner Bros. Discovery (WBD): -4.5% after a big shareholder sold off a lot of shares.
Progress Software (PRGS): -13% despite beating earnings estimates, because of weaker revenue growth and guidance.
Global Market Outlook:
In Asia, markets were mixed. Japan and South Korea saw losses, while Australia posted some gains. People are still watching US trade talks closely, especially with deadlines approaching for tariff agreements with Japan.
Here’s Our Take
The market showed resilience today, with some noticeable sector rotation. While tech stocks, which had been leading the way recently, saw some pullback, other industries like biotech, banks, and energy took the spotlight. Economic reports showed mixed signals - job openings are still strong, which is a positive sign for the labor market, but manufacturing remains sluggish. Washington is keeping investors on edge with the ongoing debates over President Trump’s $3.3 trillion tax and spending bill, which still needs to pass through the House.
On the global stage, trade talks and tariff deadlines are adding uncertainty, especially with Japan. Meanwhile, the Federal Reserve is maintaining a cautious stance on inflation and is keeping the possibility of interest rate cuts open, depending on economic conditions. Oil and gold prices are rising, but Bitcoin faced a slight decline. Overall, while there are challenges in the market, the broader economic picture remains mixed, with some areas showing strength despite concerns.
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