July 8th, 2025
Stocks Open Mixed as Markets Weigh Tariff Moves and Global Bond Sell-Off
U.S. equities opened on a steady note Tuesday, with the S&P 500 and Russell 2000 both trading flat as investors continue to process the Trump administration’s latest tariff announcements. Gains in technology and consumer discretionary sectors are being offset by weakness in utilities, financials, and parts of the same consumer group.
Overnight, global markets reflected a similar divide—Asian stocks mostly advanced, while European markets faced pressure.
Treasury auctions kicking off today may play a key role in shaping the direction of yields, as investors remain fixated on the evolving tariff landscape.
Economic Takeaways:
- A sharp sell-off in global bonds, sparked by concerns in Japan over the fiscal consequences of its upcoming election, rippled through major debt markets.
- S. Treasury yields are on the rise, with the 10-year and 30-year each up 5 basis points, pushing the long bond close to the key 5% level.
- The yield on the 10-year Treasury note rose two basis points to 4.41%—its highest level since June 20—amid lingering inflation concerns linked to trade and last week’s strong jobs data.
- Rate cut hopes continue to fade: the CME FedWatch Tool shows less than a 5% chance of a July cut and 66% odds of at least one cut by September.
- Roughly 73% of S&P 500 stocks traded above their 50-day moving averages as of late Monday.
- Oil prices have dipped 0.4%.
- Gold ETFs had drawn the largest inflow in five years during the first half of 2025 according to the World Gold Council.
- The U.S. dollar is strengthening, gaining 0.5% against a trade-weighted currency basket.
- The Trump administration unveiled new reciprocal tariff rates for key trading partners. The implementation date has been pushed from this week to August 1st.
- President Trump sent letters to 14 countries saying their products would be subject to 25% to 40% tariffs by August 1 if they don’t reach deals by then.
- Tuesday’s NFIB small business sentiment index showed a modest dip in confidence, as owners adopted a more cautious stance on sales and hiring.
- Amazon (AMZN) holds its Prime Day sales event today through Friday. The event could bring in around $12.9 billion, a record, according to Barron’s.
Trump Repeats Call for Powell to Resign, Signals Support for Congressional Probe
President Trump again called for Federal Reserve Chair Jerome Powell to resign, reiterating remarks he made last week, and stated that “it’s OK with me” if Congress investigates Powell’s actions.
The comments were made during a cabinet meeting in Washington on Tuesday, as the president fielded questions from reporters.
When asked about allegations by some Republican lawmakers that Powell may have misled Congress regarding renovation plans at the Fed’s headquarters, Trump was blunt: “He should resign immediately,” repeating what he had posted the previous Wednesday on Truth Social.
Trump again emphasized his desire for a Fed chair who would cut interest rates. Powell, meanwhile, has advocated for patience on rate policy, warning that Trump’s recent tariff actions could drive inflation during the summer.
When pressed on whether he supported a congressional investigation into Powell’s renovation-related statements, Trump said: “It’s OK with me; I think he is terrible.”
Powell, in testimony before the Senate last month, had pushed back against media reports detailing the Fed renovation’s expenses, saying they were “misleading and inaccurate in many, many respects.”
Rather than address those specifics, Trump pivoted to criticize Powell’s pre-election rate policies: “He was cutting rates like crazy” before the last November election, Trump said, suggesting Powell was “trying to get them in I guess,” referring to his Democratic rivals.
Trump also turned to Treasury Secretary Scott Bessent, seated across the table, and quipped, “I like you better.” According to sources close to the administration, Bessent is now among the top contenders to replace Powell when his term ends next May.
Gold ETFs See Biggest Inflow in Five Years During First Half of 2025, Says World Gold Council
Physically backed gold exchange-traded funds (ETFs) experienced their largest semi-annual inflow since early 2020, according to data released Tuesday by the World Gold Council (WGC).
The surge in demand comes amid political and economic uncertainty triggered by U.S. President Donald Trump’s tariff policies, which drove investors to seek safe-haven assets like gold ETFs—an important component of overall investment demand for the precious metal.
Following a modest net inflow in 2024, after three consecutive years of outflows driven by high interest rates, gold ETFs attracted $38 billion in new investments during the first half of 2025. This led to a collective increase of 397.1 metric tons of gold holdings, the WGC reported.
By the end of June, total gold ETF holdings reached 3,615.9 tons—the highest level since August 2022. The all-time record stands at 3,915 tons, reached in October 2020.
U.S.-listed funds accounted for the largest share of the inflows with 206.8 tons, while Asia-listed funds added 104.3 tons, according to the WGC.
“Despite slowing momentum in May and June, Asian investors bought a record amount of gold ETFs during the first half of the year, contributing an impressive 28% to net global flows with only 9% of the world’s total assets under management,” the WGC said.
Spot gold prices have risen 26% this year, reaching a record peak of $3,500 per troy ounce in April.
On the Move
- Tesla (TSLA) bounced back with a 1% gain in early Tuesday trading after sliding 7% Monday. The drop followed news of CEO Elon Musk’s announcement of a new political party and renewed friction with former President Trump. Adding to the pressure, last week’s budget bill passed by Congress may undercut EV tax incentives, potentially impacting Tesla and peers. Investors had previously responded positively when Musk shifted his focus away from Washington and back to company operations. Despite today’s rebound, shares remain down about 15% since early June.
- Core Scientific (CORZ) edged up 0.5% pre-market after plunging 17% Monday on news of its planned acquisition by CoreWeave (CRWV), whose shares also fell nearly 4%. While the $9 billion all-stock deal had been telegraphed through media reports over the past two weeks, investors appeared underwhelmed by the transaction’s structure.
- Nvidia (NVDA) gained 0.8% after slipping Monday, supported by a Citi analyst’s upgrade, raising the price target to $190 from $180. The firm sees the total data-center AI chip market reaching $563 billion by 2028, according to MarketWatch. The broader “Magnificent Seven” tech names also trended higher, offering early support to major indexes.
- Circle Internet Group (CRCL) fell 3% in early trade after Mizuho initiated coverage with an Underperform rating and an $85 price target, citing a potential 25%–30% downside to 2027 revenue consensus estimates. Meanwhile, Bank of America (BAC) dropped 2.8% after HSBC downgraded the stock from Buy to Hold.
- Solar stocks took a hit, with Sunrun (RUN), Enphase Energy (ENPH), and First Solar (FSLR) down 3% to 8% pre-market. The declines followed renewed anti-green energy subsidy rhetoric from the White House and ongoing pressure from elevated interest rates.
What’s Ahead
With few major data releases on deck, markets will be closely watching the minutes from the June Federal Reserve meeting on Wednesday and initial jobless claims Thursday for clues on the economic outlook.
Next week’s bank earnings reports may serve as a key catalyst for the broader market, with major U.S. banks set to begin reporting Tuesday.
Pump Radar
Stock Alerts