The S&P 500 Index ($SPX) (SPY) at present is down -0.57%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.65%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.51%. September E-mini S&P futures (ESU25) are down -0.67%, and September E-mini Nasdaq futures (NQU25) are down -0.57%.
Inventory indexes are retreating at present as President Trump ramps up his threats to impose increased tariffs, sparking a risk-off atmosphere in asset markets. Late Thursday, President Trump mentioned 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 throughout the guidelines of the US-Mexico-Canada Commerce Settlement, and a decrease 10% can be stored on some energy-related imports. He additionally mentioned he plans to impose blanket tariffs of 15% or 20% on most US commerce companions.
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Greater bond yields are additionally weighing on shares at present, with the 10-year T-note yield up +5 bp to 4.40%. Bond yields are climbing at present on concern that President Trump’s threats to impose increased tariffs on Canada and different US buying and selling companions will result in increased US inflation that might stop the Fed from slicing rates of interest.
The value of Bitcoin (^BTSUSD) is up greater than +3% at present at a brand new file 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 laws.
Shares proceed to see downward strain as President Trump has vowed to push ahead together 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 mentioned that drug corporations may face tariffs as excessive as 200% on imports in the event that they don’t relocate manufacturing to the US throughout the subsequent yr. As well as, regardless of stating that the US was near a commerce take care of India, Mr. Trump mentioned 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 have been “set as much as harm” 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 corporations 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 put up 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 charge reduce on the July 29-30 FOMC assembly.
Abroad inventory markets at present are combined. The Euro Stoxx 50 is down -0.91%. 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) at present are down -10 ticks. The ten-year T-note yield is up +4.8 bp to 4.397%. T-note costs are sliding at present as President Trump’s threats to impose increased tariffs on Canada and different US buying and selling companions fueled concern about increased US inflation that might stop the Fed from slicing rates of interest. Additionally, destructive carryover from at present’s plunge in 10-year German bunds to a 3-1/4 month low is weighing on T-notes.
European authorities bond yields at present are shifting increased. The ten-year German bund yield rose to a 3-1/4 month excessive of two.734% and is up +1.8 bp at 2.723%. The ten-year UK gilt yield is up +2.5 bp to 4.620%.
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 Government Board member Isabel Schnabel mentioned, “The bar for an additional ECB rate of interest reduce could be very excessive, and there would solely be a case for an additional charge reduce if we noticed indicators of a cloth deviation of inflation from our goal over the medium time period. And in the mean time, I see no indicators of that.”
Swaps are discounting the possibilities at 2% for a -25 bp charge reduce by the ECB on the July 24 coverage assembly.
US Inventory Movers
Chip makers are sliding at present, weighing on the broader market. Intel (INTC) is down greater than -2%. Additionally, Microchip Know-how (MCHP), Superior Micro Units (AMD), Marvell Know-how (MRVL), ARM Holdings Plc (ARM), and NXP Semiconductors NV (NXPI) are down greater than -1%.
Capricor Therapeutics (CAPR) is down greater than -40% after the FDA declined to approve the corporate’s therapy candidate aimed toward treating a illness of the center muscle related to Duchenne muscular dystrophy.
Civista Bancshares (CIVB) is down greater than -10% after saying the pricing of an underwritten public providing of three.29 million shares of widespread inventory at a value of $21.25 per share, beneath Thursday’s closing value of $24.82.
Albemarle (ALB) is down greater than -4% to guide losers within the S&P 500 after UBS downgraded the inventory to promote from impartial with a value goal of $57.
Oscar Well being (OSCR) is down greater than -4% after Wells Fargo Securities downgraded the inventory to underweight from equal weight with a value goal of $10.
Illumina (ILMN) is down greater than -2% after Scotiabank downgraded the inventory to sector carry out from sector outperform.
Northern Belief Corp (NTRS) is down greater than -1% after Keefe, Bruyette & Woods downgraded the inventory to underperform from market carry out with a value goal of $120.
Drone-related corporations are climbing at present after US Protection Secretary Pete Hegseth issued orders to ramp up manufacturing and deployment of drones. Crimson Cat Holdings (RCAT) is up greater than +21%, and AeroVironment (AVAV) and Kratos Protection & Safety Options (KTOS) are up greater than +7%.
Cryptocurrency-exposed shares are increased as the value of Bitcoin (^BTCUSD) rose greater than +2% to a brand new file excessive. MicroStrategy (MSTR) is up greater than +3%. Additionally, MARA Holdings (MARA) and Riot Platforms (RIOT) are up greater than +1%.
Levy Strauss & Co (LEVI) is up greater than +7% after reporting Q2 web income of $1.45 billion, stronger than the consensus of $1.37 billion, and elevating steering on its full-year web income forecast to up +1% to +2% from a earlier forecast of down -1% to -2%.
Efficiency Meals Group (PFGC) is up greater than +4% on stories that the corporate has attracted takeover curiosity from US Meals Holding Corp.
Medtronic Plc (MDT) is up greater than +1% after the US authorities proposed nationwide protection for renal denervation to deal with sufferers with uncontrolled hypertension, which a number of analysts deemed as constructive for the corporate’s medical merchandise.
Visteon Corp (VC) is up greater than +1% after Goldman Sachs upgraded the inventory to purchase from impartial with a value goal of $120.
Earnings Reviews (7/11/2025)
Hingham Establishment For Saving (HIFS), Lifezone Metals Ltd (LZM), PACS Group Inc (PACS), Smith-Midland Corp (SMID), Unity Bancorp Inc (UNTY).
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