Stock Market Update Monday July 7, 2025

Stock Market Update Monday July 7, 2025 U.S. Equities Drop on Renewed Tariff Uncertainty The S&P 500 declined 0.79%, the Nasdaq Composite shed 0.92%, and the Dow Jones Industrial Average dropped 0.94% after President Trump announced the imposition of 25% tariffs on select Japanese and South Korean imports, effective August 1. The move reversed last week’s bullish momentum, which had pushed major indices to record highs amid hopes of de-escalating trade disputes. The surprise policy pivot prompted broad-based profit-taking and risk-off positioning across sectors.

Away From Stocks: The Treasury curve experienced bear steepening, with the 2-year yield rising 2 basis points to 3.90% and the 30-year yield climbing 6 basis points to 4.92%, reflecting heightened inflation and policy risk expectations. WTI crude oil advanced to $68 per barrel, while gold erased early losses to close flat near $3,336 per ounce. Bitcoin remained steady around $108,000. Volatility edged higher, with the VIX ticking up toward the 18 level, signaling a modest uptick in investor caution.

Macro News:

• July 8

  • 6:00 AM – June Small Business Optimism

    • Estimate: 98.7

    • Last: 98.8

  • 11:00 AM – June NY Fed 1-Year Inflation Expectations

    • Estimate: n/a

    • Last: 3.2

• July 9

  • 2:00 PM – June 18 FOMC Meeting Minutes