The US equities market had a positive performance during the week of July 14-18, 2025, with tech stocks once again leading gains. The Nasdaq achieved its fifth consecutive record high on Friday, climbing 1.5% for the week, while the S&P 500 posted a 0.6% gain and the Dow Jones had a slight loss of 0.1%. Treasury bonds yields diverged, with short term rates 1 to 2bps lower and long term rates 4bps wider, while credit spreads were flat. The dollar index strengthened 0.6% against major currencies, with its month-to-date performance now of +1.20%.
Strong corporate earnings led by the banking sector provided support to market sentiment, with major banks and companies including JPMorgan, Citigroup, Bank of America, PepsiCo, United Airlines, and Netflix reporting better-than-expected Q2 2025 results. Despite strong fundamentals, tariff developments created some market uncertainty, particularly reports that Trump was considering 20% tariffs on the European Union beginning August 1st.
Meanwhile, positive economic data included resilient consumer sentiment, better-than-estimated retail sales and a drop in jobless claims, boosting investor confidence. Inflation data was mixed, with the Producer Price Index down to 2.3% from 2.7% last month, while the Consumer Price Index accelerated to 2.7% for the second consecutive month, with some tariffs on goods pass through starting to be seen.
US stock futures trade higher on Monday, ahead of a busy earnings week that will include results from Tesla and Alphabet. Investors will be closely watching any news on tariff negotiations as well as corporate reports, for signs of economic resilience in the face of recent uncertainties.
