Stock Market Update Wednesday July 9, 2025

Stock Market Update Wednesday July 9, 2025 Markets Drift Higher Amid Light Headlines, Treasury Yields Dip Markets faced a relatively quiet session on what would have marked the first trading day after the 90-day tariff reprieve. Equities opened with some early volatility before grinding higher throughout the session. The release of FOMC minutes late in the day proved to be a nonevent. However, a strong Treasury auction helped push yields lower, offering a modest tailwind to risk assets—particularly small caps.

Daily Performance:

• S&P 500 (SPX): +0.6%

• Nasdaq-100 (QQQ): +0.7%

• Russell 2000 (IWM): +1.1%

The U.S. 10-year yield pulled back to 4.34%, easing off recent highs. Gold posted a minor bounce, crude oil and the U.S. dollar were effectively unchanged. The VIX was crushed over the last two sessions, closing below 16 for the first time in months—signaling complacency around trade tensions (despite a post-market tariff threat directed at Brazil). Meanwhile, Bitcoin surged to a new record high, breaking through $112,000 for the first time.

Nvidia Surpasses $4 Trillion Market Cap, Lifts Broader Tech

Nvidia became the first company to breach the $4 trillion valuation mark, propelling gains in the Nasdaq and S&P 500. The company's entrenched leadership in AI semiconductors continues to attract capital and amplify bullish sentiment across the tech sector.

Tariff Overhang Tempers Broader Market Appetite

While equities notched modest gains, investors remain cautious amid renewed tariff threats from President Trump and the looming August 1 deadline. The impact of potential sector-specific levies, particularly on copper and pharmaceuticals, is keeping a lid on broader risk-taking.

Valuations Stretched, Risk of Repricing Grows

Despite upward momentum, valuations remain historically elevated. The Buffett Indicator is flashing red, suggesting equities may be priced well beyond underlying fundamentals. Analysts warn of heightened downside risk should earnings falter or policy uncertainty intensify.

Copper Tariff Sparks Commodity Surge and Industrial Jitters

The administration’s proposed 50% tariff on copper imports sent copper futures sharply higher and rattled industrial names. The measure is viewed as both inflationary and potentially demand-destructive—posing a headwind to U.S. manufacturers already grappling with input cost volatility.