The US equities market experienced a negative performance last week (July 7-11, 2025), with major indices showing declines. The S&P 500 closed down 0.3%, the Dow Jones ended with a 1% decline, and the Nasdaq posted a slight loss of 0.1% for the week. These movements were largely driven by renewed trade tensions and investor caution.
Trade policy concerns dominated, as Trump's administration's continued focus on trade negotiations and the new August 1st deadline, while new tariffs announcements created uncertainty. Corporate news provided mixed signals, with positive developments from Nvidia contrasting with Tesla's decline following Elon Musk's announcement of a new political party. Additionally, the June Fed meeting minutes revealed concerns about inflation and slower growth, reducing the likelihood of a July rate cut.
In the economic data front, a healthier-than-expected jobless claims report pushed Treasury yields higher, although the market still expects the Federal Reserve to cut 50bps by the end of this year. The 10-year US Treasury Bond auction was well-received, with strong demand from investors, but international bidders showed slightly weaker interest.
For this upcoming week, trade developments should continue to dictate the overall price action in the US markets, along with the kickstart of the highly anticipated corporate earnings season, led by the US banks on Tuesday. Overall profit expectations are the weakest in two years, with annual earning projected to rise just 2.5%.
