Market Recap – Wednesday, July 23, 2025
US Stocks End Higher, S&P 500 and Nasdaq Set Fresh Records
Stocks closed mostly higher today, with the S&P 500 and Nasdaq posting fresh all-time highs. The Dow and Russell 2000 also showed gains, although some of the day's positive moves faded in the final hours of trading. The sectors leading the market included healthcare, credit cards, oil services, and AI, with notable performances from companies like Thermo Fisher (TMO), and Boston Scientific (BSX). Big tech stocks were mixed, with NVIDIA (NVDA) continuing its decline, while companies like Google (GOOGL), Amazon (AMZN), and Meta (META) performed well. On the other hand, sectors like semiconductors, software, and telecom lagged behind.
Trade and Tariffs: US and EU Nearing Deal on Tariffs
The big story today centered around trade. The US and EU are close to reaching a deal that would impose a 15% tariff on European imports, lower than the previously threatened 30% tariff. This deal would help avoid a trade war, but there's still some tension, as Europe is preparing retaliatory measures if the US follows through with further tariff hikes. Meanwhile, the US also reached a trade agreement with Japan, which saw tariffs on Japanese imports reduced to 15% from 25%.
Earnings Season: Mixed Results with Focus on AI and Trade Impact
Earnings season is in full swing, and results have been mixed. Some companies, like Medpace (MEDP) and Thermo Fisher (TMO), beat earnings expectations, while others, like Lockheed Martin (LMT) and Philip Morris (PM), faced challenges. There’s a lot of attention on how companies are navigating trade uncertainty and the impact of tariffs on their earnings. AI-driven growth remains a bright spot, especially with companies like GE Vernova (GEV) and Thermo Fisher showing strong performance.
Economic Data: Existing Home Sales Miss Expectations
Economic data showed a decline in existing home sales for June, down 2.7% month-over-month. Sales were lower than expected, partly due to high mortgage rates and limited inventory. However, the demand for homes remains strong, especially in certain regions, and housing prices continue to rise.
Here's Our Take
Today’s market rally was driven by positive trade headlines and strong earnings in sectors like healthcare and AI. While trade talks with the EU and Japan appear to be progressing, tariff uncertainty continues to linger as a key risk for markets. The mixed earnings season and concerns around the ongoing effects of tariffs highlight the challenges that businesses face. That said, the overall market remains resilient, with investor focus shifting toward AI and the tech-driven growth narrative. With key economic data such as home sales and inflation expectations showing some softening, the market is likely to continue balancing trade uncertainties with growth optimism. Keep an eye on upcoming earnings reports, particularly from big tech, as they will likely continue to drive sentiment in the coming days.
P.S. Know someone who'd appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com