The New York Stock Exchange (NYSE) experienced a mixed day on Tuesday, with the S&P 500 Index closing down -0.07%, the Dow Jones Industrials Index closing down -0.37%, and the Nasdaq 100 Index closing up +0.07%. The September E-mini S&P futures were down -0.07%, while the September E-mini Nasdaq futures were up +0.06%.
Stocks faced pressure on Tuesday due to President Trump’s hard-line trade rhetoric, stating that the US would not offer extensions to the August 1 deadline for reciprocal tariffs to take effect. Additionally, higher bond yields added to the market’s woes, with the 10-year T-note yield rising to a 2-week high of 4.42%. The fear of inflation and the potential impact on interest rates due to higher tariffs also weighed on investor sentiment.
Despite these challenges, stocks initially received some support as recent tariff announcements left room for further negotiations. President Trump indicated that the August 1 deadline for higher tariff rates was not set in stone and expressed openness to additional trade talks. The Nasdaq 100 saw gains driven by strength in chip makers, while energy producers also contributed to the market’s overall performance.
Looking ahead, the upcoming earnings season poses another hurdle for stocks, with consensus estimates predicting a modest rise in Q2 earnings for S&P 500 companies. The focus for the rest of the week will be on new tariff and trade deal developments, with the release of the FOMC meeting minutes on Wednesday and weekly initial unemployment claims on Thursday.
In the international markets, European stock markets closed higher, with the Euro Stoxx 50 reaching a 3-1/2 week high and China’s Shanghai Composite hitting an 8-month high. German trade news, however, was weaker than expected, with lower-than-anticipated exports and imports in May.
Interest rates saw movement on Tuesday, with September 10-year T-notes closing lower as yields rose to a 2-week high. European government bond yields also moved higher, with the German bund yield reaching a 1-month high. Swaps are currently pricing in a 5% chance of a rate cut by the ECB at the July 24 policy meeting.
In the US stock market, chip stocks led gains in the Nasdaq 100, while energy stocks and service providers rallied on the back of rising WTI crude oil prices. Chemical-making companies also saw gains after the US Environmental Protection Agency withdrew new use rules for 18 chemicals.
On the downside, stocks like Fair Isaac, Datadog, and Newmont faced losses due to various downgrades and valuation concerns. Earnings reports for July 9, 2025, include companies like AZZ Inc, Barnes & Noble Education Inc, and Methode Electronics Inc.
Overall, the market continues to navigate through trade tensions, earnings expectations, and interest rate speculation, with investors closely monitoring developments for potential market impacts.
