The S&P 500 Index ($SPX) (SPY) on Friday closed down -0.27%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.66%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.17%.  September E-mini S&P futures (ESU25) fell -0.33%, and September E-mini Nasdaq futures (NQU25) fell -0.21%. 

Inventory indexes on Friday retreated on the escalation of commerce tensions as President Trump ramped up his threats to impose larger tariffs, sparking a risk-off setting in asset markets.  Late Thursday, President Trump stated a 35% tariff on some Canadian merchandise would take impact on August 1, up from the present 25%.  The brand new Canadian tariffs wouldn’t apply to items traded inside the guidelines of the US-Mexico-Canada Commerce Settlement, and a decrease 10% tariff can be saved on some energy-related imports.  He additionally stated he plans to impose blanket tariffs of 15% or 20% on most US commerce companions. 

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Shares had been additionally undercut by Friday’s +7 bp rise within the 10-year T-note yield.  T-note yields rose on concern that President Trump’s threats to impose larger tariffs on Canada and different US buying and selling companions will result in larger US inflation that would stop the Fed from reducing rates of interest.

The worth of Bitcoin (^BTSUSD) on Friday rallied by greater than +3% and posted a brand new report excessive.  Bitcoin has rallied greater than +9% this week after the US Home Committee on Monetary Companies introduced on Tuesday that the week of July 14 might be “Crypto Week.” The US Home Committee on Methods and Means has deliberate an oversight subcommittee listening to on July 16 entitled, “Making America the Crypto Capital of the World,” which can result in extra crypto-friendly rules.

Shares have been undercut as President Trump vowed to push ahead along with his aggressive tariff regime, stressing he wouldn’t provide extra extensions on country-specific tariffs set to take impact on August 1.  Earlier this week, Mr. Trump imposed a 50% tariff on copper imports that can embody semi-finished items, and stated that drug firms might face tariffs as excessive as 200% on imports in the event that they don’t relocate manufacturing to the US inside the subsequent 12 months.  As well as, regardless of stating that the US was near a commerce take care of India, Mr. Trump stated he would nonetheless impose a ten% tariff on India’s items for his or her participation in BRICS, a bunch of growing nations he claimed had been “set up to hurt” the US.   

One other hurdle for shares is the upcoming earnings season, which begins in earnest subsequent week.  Bloomberg Intelligence information present that the consensus for Q2 earnings of S&P 500 firms is for an increase of +2.8% year-over-year, the smallest enhance in two years.  Additionally, solely six of the eleven S&P 500 sectors are projected to publish a rise in earnings, the fewest since Q1 of 2023, based on Yardeni Analysis.

Federal funds futures costs are discounting the possibilities at 7% for a -25 bp fee reduce on the July 29-30 FOMC assembly.

Abroad inventory markets Friday had been blended.   The Euro Stoxx 50 fell -1.01%.  China’s Shanghai Composite climbed to a 9-month excessive and closed up +0.01%.  Japan’s Nikkei Inventory 225 fell to a 1-week low and closed down -0.19%.

Curiosity Charges

September 10-year T-notes (ZNU25) on Friday fell by -15 ticks.  The ten-year T-note yield rose by +7 bp to 4.419%.  T-note costs fell on President Trump’s threats to impose larger tariffs on Canada and different US buying and selling companions, which fueled concern about larger US inflation that would stop the Fed from reducing rates of interest.  T-note costs had been additionally undercut after the 10-year German bund yield rose to a 3.25-month excessive.

European authorities bond yields moved larger.  The ten-year German bund yield rose to a 3.25-month excessive of two.734% and ended the day up +2.0 bp at 2.725%.  The ten-year UK gilt yield rose +2.6 bp to 4.622%.

UK Might manufacturing manufacturing fell -1.0% m/m, weaker than expectations of -0.1% m/m and the largest decline in 10 months.

ECB Govt Board member Isabel Schnabel stated, “The bar for another ECB interest rate cut is very high, and there would only be a case for another rate cut if we saw signs of a material deviation of inflation from our target over the medium term. And at the moment, I see no signs of that.”

Swaps are discounting the possibilities at 1% for a -25 bp fee reduce by the ECB on the July 24 coverage assembly.

US Inventory Movers

The Magnificent Seven shares held up pretty effectively on Friday regardless of the losses in the principle indexes, with solely Apple (AAPL) and Meta Platforms (META) exhibiting losses.  Alphabet (GOOG), Amazon (AMZN), and Tesla (TSLA) all closed up by greater than +1%.

Nvidia (NVDA) rose +0.5% after CEO Huang met President Trump on the White Home, forward of Huang’s journey to China.

Some cryptocurrency shares rallied as the value of Bitcoin (^BTCUSD) rose greater than +3% to a brand new report excessive.  MicroStrategy (MSTR) rose greater than +3% to guide gainers within the Nasdaq 100. 

Drone-related firms climbed after US Protection Secretary Pete Hegseth issued orders to ramp up manufacturing and deployment of drones.  Pink Cat Holdings (RCAT) rallied greater than +25%, Kratos Protection & Safety Options (KTOS) rallied greater than +11%, and AeroVironment (AVAV) rallied greater than +10%.

Airline shares on Friday moved decrease, giving again a few of Thursday’s sharp beneficial properties that had been pushed by optimistic steering information from Delta.  American Airways Group (AAL) fell greater than -5%, United Airways Holdings (UAL) fell greater than -4%, and Alaska Air Group (ALK) fell greater than -3%.  Delta Air Strains (DAL) fell -0.25% after Thursday’s surge of practically +12%.

Capricor Therapeutics (CAPR) plunged -33% after the FDA declined to approve the corporate’s therapy candidate geared toward treating a illness of the center muscle related to Duchenne muscular dystrophy. 

Civista Bancshares (CIVB) fell greater than -13% after asserting the pricing of an underwritten public providing of three.29 million shares of frequent inventory at a value of $21.25 per share, under Thursday’s closing value of $24.82.

Oscar Well being (OSCR) fell greater than -7% after Wells Fargo Securities downgraded the inventory to underweight from equal weight with a value goal of $10.

Albemarle (ALB) fell greater than -4% after UBS downgraded the inventory to promote from impartial with a value goal of $57.

Expeditors Worldwide of Washington (EXPD) fell practically -3% after Financial institution of America World Analysis downgraded the inventory to underperform. 

Northern Belief Corp (NTRS) fell -0.6% after Keefe, Bruyette & Woods downgraded the inventory to underperform from market carry out with a value goal of $120.

Levy Strauss & Co (LEVI) rose greater than +11% after reporting Q2 internet income of $1.45 billion, stronger than the consensus of $1.37 billion, and elevating steering on its full-year internet income forecast to up +1% to +2% from a earlier forecast of down -1% to -2%. 

Efficiency Meals Group (PFGC) rose by greater than +4% on experiences that the corporate has attracted takeover curiosity from US Meals Holding Corp. 

Visteon Corp (VC) rose by greater than +2% after Goldman Sachs upgraded the inventory to purchase from impartial with a value goal of $120.   

Earnings Stories (7/14/2025)

Fairness Bancshares Inc (EQBK), Fastenal Co (FAST), FB Monetary Corp (FBK), Immersion Corp (IMMR), Kestra Medical Applied sciences Ltd (KMTS), Rezolve AI PLC (RZLV), Simulations Plus Inc (SLP).

On the date of publication,

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