Market Recap – Tuesday, July 15, 2025

Markets Move Lower Despite AI Optimism, Tariff Threats and Rising Rates Weighing on Stocks

Today’s market had a bit of a rollercoaster feel. Stocks started strong but ended lower, with the S&P 500 closing at its lowest point after reaching a new high earlier. A lot of stocks ended the day in the red, with nearly 90% of S&P 500 companies finishing lower. The biggest declines came from banks, investment firms, homebuilders, airlines, and big pharma. On the flip side, big tech companies like Nvidia were the standout performers, with Nvidia making waves after receiving approval to sell its AI chips to China again.

Despite the broad losses, a few sectors did well, especially those tied to AI, like Nvidia, and tech stocks related to China. Other strong areas included software companies, machinery, and agricultural equipment. Retail stocks also did well.

Bond prices were a bit weaker, which caused interest rates to rise slightly. The U.S. dollar strengthened today, and while gold prices dropped, Bitcoin hit a new all-time high. Oil prices, however, fell after some strong gains last week.

The economic news today showed that inflation is still up, but not as much as expected. Inflation for June came in at 0.3% (in line with predictions), but the core inflation—excluding food and energy—was a bit lower than expected, which was good news for the market. But tariff prices (especially on clothes and other goods) are still pushing up costs for consumers.

There was also some talk about interest rates, with investors cutting back their expectations for the Fed to lower rates quickly. President Trump reiterated his call for big interest rate cuts, but it seems the market is starting to take a more cautious approach.

On the trade front, Trump warned that tariffs on EU and Mexico goods could go up to 30% starting in August. While the market didn’t react too strongly, the ongoing concerns about trade and tariffs are keeping some investors on edge.

Here's Our Take

The market struggled today, with gains in the early part of the day fading away. While the news about Nvidia’s chip sales to China gave some hope to tech stocks, broader concerns like the impact of tariffs, rising interest rates, and uncertain trade talks are holding back the market.

The recent economic data, showing that inflation is still rising but not as fast as before, took some of the pressure off the Fed to cut interest rates. Still, with trade tensions and higher rates, there’s a lot of uncertainty out there.

We expect more ups and downs in the coming weeks, with important earnings reports from big companies and new inflation data next week. While AI is still a big story, it’s hard to ignore the risks around trade and rising rates.

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