U.S. Stock Market Updates: July 8, 2025

Major Indices Performance

• The Dow Jones Industrial Average dropped 0.37% to 44,240.76. Tariff fears weighed heavily on investor sentiment.
  
• Meanwhile, the S&P 500 fell slightly by 0.07%, closing at 6,225.55. It marked two consecutive days of declines.
  
• However, the Nasdaq Composite held steady, up 0.02% at 24,418.46.
  
• In contrast, the Russell 2000 rebounded strongly, gaining 0.69% to 2,229.44.
  
• Additionally, the VIX fell 5.52% to 16.81, signaling reduced market fear.
  

Tariff Uncertainty Impacts Markets

Tariff discussions dominated market movements. Initially, President Trump hinted at possible tariff extensions, boosting early gains. However, he later confirmed no delays, unsettling investors. Specifically, a proposed 50% tariff on copper pushed prices up 9.41%. This could impact industries like automotive and manufacturing. Furthermore, a 200% tariff threat on pharmaceuticals, delayed for 1-1.5 years, led to a sector rebound. Experts warn tariffs could trigger a 5-10% market pullback.

Interest Rates and Bond Auctions

A $145.5 billion bond auction saw $58 billion in bids, yielding 3.89%. This was higher than issuance rates. Consequently, the 10-year Treasury yield stabilized at 4.39%. The 30-year yield hit 4.92%, briefly nearing 5%. Moreover, a Supreme Court ruling allowed federal layoffs, easing yield spikes. Rising rates raised concerns about economic growth. Therefore, markets closely monitor Federal Reserve actions.

Federal Reserve and Economic Outlook

The Fed faces pressure to cut rates. Trump urged immediate action, tweeting, “Now is the time.” Yet, only 4.7% expect a July cut. By September, a 62.9% chance exists for a 4-4.25% rate. By December, two cuts to 3.75-4% are possible (43% probability). Meanwhile, restructuring risks higher unemployment. Combined with tariffs, this fuels stagflation fears. Investors remain cautious.

Sector Highlights

Technology and Semiconductors

Tech giants showed mixed results. Amazon, despite Prime Day, fell due to 14% lower consumer spending. Conversely, Nvidia rose 1.12%, hitting $160, nearing a $4 trillion valuation. Micron Technology gained 3.75%, and the Philadelphia Semiconductor Index climbed 1.92%. Sovereign AI demand drove semiconductor strength. However, Microsoft and Google weakened slightly.

Automotive Sector

The automotive sector performed well. Tesla rose 1.32%, briefly crossing $300 before retreating. NIO and Lucid surged 9%. Ford and GM also rebounded. Optimism stemmed from potential tariff negotiations with Southeast Asia. Tesla’s RSI stood at 42, with 100 million shares traded.

Pharmaceuticals and Energy

Pharmaceuticals rebounded due to delayed tariff threats. Energy stocks dipped as Trump proposed limiting solar tax credits. First Solar and Sunrun saw significant declines. Meanwhile, Bitcoin and Ethereum gained, with SoFi up 3.69%.

Retail and Consumer

Retail stocks like Macy’s, Lululemon, and Crocs rallied. Starbucks and Domino’s Pizza also climbed. Consumer sentiment improved slightly, per Redbook’s 5.9% growth. However, used car prices rose 6.3%, signaling inflation risks.

Tesla in Focus

Tesla faced volatility. Elon Musk’s tweet demanding 25% voting rights stirred debate. A proposed XAI-Tesla merger added uncertainty. Meanwhile, Giga Texas progresses on Cybercab production, eyeing 2026. Model Y Juniper work continues, boosting optimism. Tesla’s valuation remains at $959 billion, below the $1 trillion club.

Other Corporate News

Boeing delivered 60 planes, mainly to China, but its stock dipped. SpaceX’s valuation hit $400 billion amid fundraising. Amazon struggled post-Prime Day. CrowdStrike and Palantir gained in AI-driven tech. Goldman Sachs raised its S&P target to 6,600, while Bank of America set 6,300.

Economic Indicators

• Redbook Index: +5.9%, signaling robust activity.
• Used Car Prices: Up 6.3% year-over-year.
• Expected Inflation: Dropped from 3.2% to 3%.
• Unemployment: Risks rising due to federal layoffs.

What’s Next?

Tomorrow, the FOMC minutes will offer Fed policy clues. A 10-year Treasury auction is also due. Investors await clarity on tariffs and rates. Additionally, Musk’s Grok 4 launch event could impact sentiment. Markets remain volatile, demanding vigilance.

Conclusion

The stock market reflects tariff and rate uncertainties. Tech and autos show resilience, while energy lags. Stay updated on Fed moves and corporate earnings. This analysis equips investors with actionable insights for July 2025.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making investment decisions.