Author: Matthew Collom

U.S. stock futures dropped Friday night as investors weighed newly announced tariffs from former President Donald Trump and underwhelming earnings from Amazon, all ahead of July’s crucial jobs report.

As of 05:55 ET, Dow Jones futures were down 375 points (0.9%), S&P 500 futures slipped 55 points (0.9%), and Nasdaq 100 futures declined 218 points (0.9%).

The previous session saw Wall Street’s major indexes retreat from earlier gains, with escalating trade tensions overshadowing strong results from tech leaders Meta Platforms and Microsoft.

Trump Unleashes New Round of Tariffs

Trump signed an executive order Thursday raising tariffs—up to 50% in some cases—on dozens of countries. The move comes as a “reciprocal tariff” deadline passed after weeks of negotiations.

Key U.S. trade partners such as the EU, Japan, and South Korea will face new duties of 15%, while countries running a trade surplus with the U.S. will see 10% tariffs. Brazil will be hit with 50% levies, and Canada’s tariffs rise to 35% for non-compliant goods under the U.S.-Mexico-Canada Agreement.

The new tariffs are set to take effect at 12:01 a.m. on August 7. Meanwhile, Mexico was granted a 90-day extension to reach a trade deal.

Amazon Falls on Cloud Concerns

Amazon (NASDAQ: AMZN) shares declined in premarket trading after issuing weaker-than-expected operating income guidance for the current quarter. While Amazon Web Services posted $30.9 billion in sales—up 17.5% year-over-year and slightly above expectations—investors were disappointed amid fears AWS is losing market share.

In contrast, Apple (NASDAQ: AAPL) rallied after beating Q3 expectations, helped by strong iPhone sales in China and record-high services revenue.

More corporate earnings are on deck Friday from Chevron, Exxon Mobil, Colgate-Palmolive, Regeneron Pharmaceuticals, and Kimberly-Clark.

All Eyes on July Payrolls

Investors are now awaiting the U.S. Labor Department’s July jobs report, due Friday morning. Economists expect 106,000 new jobs, down from 147,000 in June, with unemployment ticking up to 4.2% from 4.1%.

Earlier this week, the Federal Reserve held interest rates steady for the fifth consecutive meeting, resisting political pressure from Trump to cut rates. While the labor market has held firm, inflation remains above the Fed’s 2% target, and early signs suggest new tariffs may already be pushing up prices on certain trade-exposed goods.

Oil Slips as Tariffs Cloud Outlook

Crude prices edged lower Friday as traders assessed the potential economic drag from the new tariffs.

At 05:55 ET, Brent crude dipped 0.3% to $71.47 per barrel, while U.S. WTI fell 0.4% to $69.01. Both benchmarks are still set to close the week up roughly 5%, supported by Trump’s earlier threat to impose sanctions on

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stocks edged higher on Wednesday as investors digested a heavy slate of corporate earnings, robust economic data, and awaited the latest Federal Reserve policy decision.

At 09:40 ET, the Dow Jones Industrial Average rose 20 points, or 0.1%, while the S&P 500 gained 7 points, or 0.1%, and the Nasdaq Composite advanced 45 points, or 0.2%.

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Mega-Cap Tech Earnings in Focus

This week marks the busiest stretch of the earnings season, with 199 S&P 500 companies having reported so far. Nearly 82% have topped profit estimates, according to FactSet.

Wednesday brings the first wave of results from the “Magnificent Seven” mega-cap tech names. Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) are set to report after the bell, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday. Other companies posting results include Arm Holdings (NASDAQ:ARM) and Robinhood Markets (NASDAQ:HOOD).

Beyond tech, Starbucks (NASDAQ:SBUX) surged after its third-quarter revenue beat forecasts, signaling progress in its turnaround plan. Humana (NYSE:HUM) climbed after lifting its annual revenue guidance, while Etsy (NASDAQ:ETSY) gained on stronger-than-expected sales, supported by personalized marketing and AI initiatives. VF Corporation (NYSE:VFC) also rallied after surpassing revenue estimates, driven by solid apparel and footwear demand.

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Trade Talks Remain a Headwind

Investor sentiment was dented slightly after two days of U.S.-China trade talks in Sweden ended without a breakthrough. Both sides described the discussions—aimed at extending their 90-day trade truce—as “constructive,” but no major progress was achieved.

Adding to trade tensions, President Trump announced a 25% tariff plus penalties on India, effective August 1, citing its purchases of Russian military equipment and energy. This comes just days after Trump reached a framework trade agreement with the European Union, while negotiations with other countries remain unresolved ahead of the August 1 tariff deadline.

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Fed Policy Meeting to Wrap Up

The Federal Reserve will conclude its July meeting later today and is widely expected to keep interest rates unchanged at 4.25%-4.5%. Chair Jerome Powell and other Fed officials have signaled a more cautious approach to future rate moves, wanting to assess the economic impact of Trump’s aggressive tariff strategy.

The White House has been pressuring the Fed to cut rates to bolster growth, a demand intensified by the latest economic reports. Data released Wednesday showed the U.S. economy grew at an annualized 3.0% in the second quarter, beating forecasts for 2.5% and rebounding from a 0.5% contraction in Q1. Additionally, private payrolls increased by 104,000 in July, sharply higher than expected, following a revised 23,000 decline in June. These figures precede Friday’s closely watched nonfarm payrolls report.

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Oil Prices Extend Gains

Crude prices climbed again Wednesday, building on sharp gains from the previous session. At 06:00 ET, Brent crude was up 0.6% at $72.11 a barrel, while West Texas Intermediate (WTI) rose 0.7% to $69.70. Both benchmarks settled Tuesday at their highest levels since June 20, jumping more than 3% after President Trump warned of additional measures against Russia if it fails to make progress on ending the war in Ukraine.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The S&P 500 closed lower on Tuesday after hitting a fresh intraday record, as traders digested a wave of corporate earnings and persistent uncertainty over U.S.-China trade negotiations.

At the 4:00 p.m. ET close, the Dow Jones Industrial Average lost 204 points, or 0.5%. The S&P 500 slipped 0.3% after reaching an intraday all-time high of 6,409.26, while the Nasdaq Composite fell 0.4%.

U.S. equities have been trending higher in recent days following weekend news of a trade agreement between the United States and the European Union.

Trade Talks Remain a Key Focus

Markets kept a close eye on developments in Washington’s ongoing trade talks with Beijing. U.S. Trade Representative Jamieson Greer said Tuesday that negotiations were “heading in the right direction,” though he stopped short of providing details on a potential deal or whether the current tariff truce will be extended.

If no extension is reached, tariffs on Chinese imports could revert to higher April 2 levels. Earlier this year, both nations struck preliminary agreements that helped ease tensions in a trade war marked by escalating tariffs and restrictions on key rare-earth mineral exports.

Fed Meeting Kicks Off

The Federal Reserve began its latest two-day policy meeting Tuesday, with a decision expected Wednesday. Interest rates are widely anticipated to remain at 4.25%–4.5%, but investors will watch for hints on whether cuts could come later this year.

Fed Chair Jerome Powell has maintained a cautious “wait-and-see” stance amid uncertainty over the Trump administration’s trade policies. However, some FOMC members have recently voiced support for easing rates.

President Donald Trump again urged the central bank on Monday to cut rates to help boost economic growth.

The Bank of Japan will also hold a policy meeting Thursday, with no changes expected. On the same day, investors will parse June’s PCE price index—the Fed’s preferred inflation gauge—for further insight into how tariffs may be impacting consumer prices.

This week is also packed with labor market data: JOLTS Job Openings (Tuesday), ADP private payrolls (Wednesday), jobless claims (Thursday), and the July jobs report (Friday).

Earnings Season in Full Swing

This week marks the busiest stretch of earnings season, with more than 150 S&P 500 companies scheduled to release quarterly results. Tech giants from the so-called “Magnificent Seven” are in focus: Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) report Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday.

Notable stock moves Tuesday included:

• Merck (NYSE:MRK) fell after announcing job and cost cuts designed to save $3 billion annually. Q2 results were weighed down by soft demand for its Gardasil vaccine in China.
• Novo Nordisk (NYSE:NVO) slumped after lowering its full-year sales and profit outlook for the second time in 2025, citing weaker-than-expected demand for its weight-loss drug Wegovy.
• PayPal (NASDAQ:PYPL) declined after guiding for flat quarterly profit compared with last year, despite raising its full-year forecast.
• United Parcel Service (NYSE:UPS) tumbled 10.6% after revenue and profit dropped in Q2 amid weaker demand driven by trade policy volatility.
• UnitedHealth (NYSE:UNH) edged lower after reinstating its full-year profit forecast, which still fell short of analysts’ already-lowered expectations.
• Whirlpool (NYSE:WHR) plunged following disappointing second-quarter earnings and a sharp cut to its 2025 guidance.

Visa (NYSE:V) will report after the closing bell.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. Inflation Rises as Corporate Earnings Fuel Market Highs

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United States

Strong Earnings Lift Markets to New Highs
The S&P 500 and Nasdaq Composite both hit new all-time highs last week, driven by strong Q2 earnings and generally positive economic data. The Russell 2000 also rose, while the Dow Jones Industrial Average and S&P Midcap 400 ended slightly lower.

The earnings season kicked off with major banks like JPMorgan Chase and Citigroup reporting better-than-expected results. Later in the week, consumer-facing companies such as PepsiCo, United Airlines, and Netflix also topped forecasts.

NVIDIA rallied after receiving approval from the Trump administration to sell its H2O AI chips to China. The company, which recently hit a $4 trillion market cap, surged on the news.

Inflation Picks Up; Retail Sales Rebound
June CPI rose 0.3% month over month—its biggest jump in five months—matching expectations. On a year-over-year basis, inflation accelerated to 2.7%, while core CPI rose to 2.9%, up from 2.8% in May. Prices for household goods, recreation, and footwear saw notable increases, partly offset by declining vehicle prices.

Retail sales rose 0.6% in June, rebounding from May’s 0.9% drop. Midweek market jitters over reports that President Trump might remove Fed Chair Jerome Powell were quickly reversed after Trump denied the rumor.

Corporate Bonds Outperform Treasuries
Intermediate- and long-term Treasury yields held steady, while short-term yields edged lower amid speculation around the Fed. Investment-grade corporate bonds outperformed Treasuries, with new issues largely oversubscribed.

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Europe

Markets Mixed as Investors Eye Trade Talks
The STOXX Europe 600 finished flat, as investors monitored progress in U.S.-EU trade discussions. Italy’s FTSE MIB rose 0.58%, France’s CAC 40 and Germany’s DAX were little changed, and the UK’s FTSE 100 gained 0.57%, helped by a weaker pound.

UK Inflation Surges; Labor Market Softens
UK inflation surprised to the upside, rising to 3.6% in June—the highest since January 2024—driven by higher fuel prices. Core services inflation held at 4.7%, showing persistent cost pressures.

The job market weakened. The unemployment rate ticked up to 4.7%, and payrolls fell by 41,000 in June. Wage growth (excluding bonuses) came in at 5.0%, slightly above forecasts but down from 5.3% in May.

Eurozone Industrial Output Rebounds
Industrial production in the euro area rose 1.7% in May, beating expectations and reversing April’s 2.2% drop. Strong output in energy, capital goods, and non-durable consumer goods contributed to the gain. Year over year, output rose 3.7%.

The region’s trade surplus widened to €16.2 billion, up from €12.7 billion a year ago, as exports grew and imports fell.

German Sentiment at 3-Year High
Germany’s ZEW economic sentiment index rose for the third month in a row, reaching 52.7—the highest since February 2022. Optimism was driven by hopes for EU stimulus and resolution of U.S.-EU trade tensions.

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Asia-Pacific

Japan: Modest Gains Ahead of Elections
Japanese equities posted moderate gains, with the Nikkei 225 up 0.63% and the TOPIX rising 0.40%. Investors await results from the July 20 Upper House election, which could impact Prime Minister Shigeru Ishiba’s coalition majority.

The 10-year JGB yield rose to 1.53%, while the yen weakened toward 148 per U.S. dollar.

Cooling Inflation, Weak Exports
Core CPI rose 3.3% in June, below expectations and down from 3.7% in May, due mainly to lower energy costs. Exports fell 0.5% year over year, missing forecasts, with declines in autos, parts, and pharmaceuticals. A new 25% U.S. tariff on Japanese goods is set to take effect August 1, though bilateral talks are ongoing.

China: Solid GDP, But Risks Loom
Mainland Chinese markets advanced, with the CSI 300 up 1.09% and the Shanghai Composite up 0.69%. Hong Kong’s Hang Seng jumped 2.84%.

China’s Q2 GDP grew 5.2% year over year, slightly above expectations, easing near-term pressure for stimulus. However, deflation concerns, soft retail sales, and upcoming U.S. trade deadlines pose headwinds.

The real estate downturn persists: new home prices fell 0.27% in June, while existing home prices dropped 0.61%. Residential sales fell 12.6% year over year—the largest decline in 2025 so far.

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Other Key Markets

Indonesia: Rate Cut and U.S. Trade Deal
Indonesia’s central bank cut its benchmark rate from 5.50% to 5.25%, citing lower inflation forecasts and the need to support growth. Separately, the U.S. and Indonesia finalized a trade deal that set tariffs at 19%—down from an initially proposed 32%. Indonesia also agreed to purchase Boeing aircraft and import over $20 billion in U.S. energy and agricultural goods.

Peru: Central Bank Holds Steady
Peru’s central bank kept its policy rate at 4.50%, as expected. Annual inflation remained at 1.7% in June, with stable 12-month inflation expectations at 2.3%. Policymakers noted that global inflation expectations—particularly in the U.S.—may slow the path back to target inflation locally.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stocks ended Friday on a mixed note, with the S&P 500 closing flat amid renewed trade tensions with Europe. Despite the muted session, the benchmark index posted a gain for the week.

By the closing bell, the Dow Jones Industrial Average fell 142 points (0.3%), the S&P 500 was virtually unchanged, and the NASDAQ Composite ticked up 0.1%.

Market sentiment took a hit after the Financial Times reported that President Donald Trump is considering tariffs of 15% to 20% on goods imported from the European Union. The proposed levy—well above the 10% the EU had hoped for—suggests trade negotiations may have stalled. With the August 1 deadline fast approaching, the move appears designed to pressure the EU into making broader concessions.

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Earnings Season Gathers Momentum

Investors continue to digest second-quarter earnings, which have been largely better than expected so far:

• American Express (AXP) climbed after the credit card company beat profit estimates, fueled by strong spending from high-income consumers.
• 3M (MMM) rose after raising its full-year earnings outlook, benefiting from cost-cutting efforts and a shift toward higher-margin products.
• Charles Schwab (SCHW) advanced after reporting strong quarterly results driven by asset growth and improved net interest margins.
• Netflix (NFLX) delivered solid earnings and raised its revenue guidance for the year, but shares pulled back slightly as results fell short of sky-high analyst expectations. Even so, Netflix stock is up over 43% year-to-date, supported by confidence in its dominance in the streaming sector.

Looking ahead, the earnings calendar remains busy next week, with reports expected from Coca-Cola (KO), Texas Instruments (TXN), Alphabet (GOOGL), and Tesla (TSLA).

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Consumer Sentiment Improves as Inflation Expectations Ease

The University of Michigan’s consumer sentiment index rose to 61.8, slightly above expectations of 61.5. One-year inflation expectations dropped to 4.4%, down from 5.0% previously—an encouraging sign for consumers and policymakers.

Recent economic data has shown resilience: retail sales beat forecasts, weekly jobless claims declined, and June inflation remained largely in line with estimates. However, tariffs are beginning to put upward pressure on select consumer goods.

Amid these developments, the Federal Reserve has adopted a cautious, wait-and-see stance. Still, Fed Governor Christopher Waller said Thursday that a rate cut at the Fed’s next meeting could be warranted, citing growing risks to the economy.

Waller also emphasized that the recent inflation uptick driven by tariffs is likely temporary and shouldn’t alter the Fed’s broader policy outlook.

Meanwhile, President Trump continues to push the Fed to act more aggressively in lowering interest rates to support economic growth.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stocks closed lower on Friday, capping a losing week for the S&P 500 as renewed fears of a global trade war rattled investors. The market decline followed President Donald Trump’s announcement of a 35% tariff on Canadian imports beginning August 1.

At the close, the Dow Jones Industrial Average dropped 279 points (0.6%), while the S&P 500 slipped 0.4% and the NASDAQ Composite shed 0.2%.

Trump Imposes 35% Tariff on Canada, Heightens Trade Tensions

Both the S&P 500 and NASDAQ retreated from record highs after Trump unveiled a letter detailing new tariffs on Canadian goods, effective next month. These duties add to existing sector-specific tariffs and aim, according to the president, to pressure Ottawa into curbing fentanyl trafficking into the U.S.

Trump also accused Canada of unfair trade practices, citing already high Canadian tariffs on various American sectors.

This week, the administration issued similar letters targeting other major economies: a 25% tariff on goods from South Korea and Japan, and a 50% duty on Brazilian imports. Brazil warned it would respond with equal measures if the U.S. proceeds.

Trump added that the European Union could also be hit with tariff notices as soon as Friday, casting doubt over the direction of trade negotiations with Washington.

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Banks to Kick Off Q2 Earnings Season

Looking ahead, the second-quarter earnings season begins next week. Major banks including JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and Bank of New York Mellon (BK) are all scheduled to report Tuesday.

In individual stock moves, Levi Strauss (LEVI) gained after raising its sales outlook, signaling it can absorb some of the tariff impact in the near term.

PENN Entertainment (PENN) tumbled more than 7% amid concerns over slowing growth, following weaker-than-expected gaming revenues in Iowa and Indiana.

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All Eyes on Next Week’s Inflation Data

Friday’s economic calendar was light, but investors are already looking ahead to next week’s Consumer Price Index (CPI) report for June, which is expected to show a 0.3% monthly increase.

Minutes from the Fed’s June meeting revealed only a few officials were open to cutting interest rates this month. Most remained cautious, citing potential inflationary pressures stemming from the new tariffs.

Fed fund futures currently price in a low probability of a July rate cut, though a move in September appears increasingly likely.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stocks ended at all-time highs Wednesday, led by a strong tech rally after Nvidia became the first semiconductor company to top a $4 trillion valuation. The surge helped markets shake off concerns over President Donald Trump’s latest tariff moves.

At the close, the Nasdaq 100 Futures jumped 0.95% to a record 20,611.34. The Dow Jones Industrial Average added 217 points (0.5%) and the S&P 500 gained 0.6%.

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Nvidia Hits $4 Trillion, Fuels AI-Driven Tech Rally

Nvidia (NASDAQ: NVDA) rose 2%, lifting its market value above $4 trillion and reaffirming its lead in AI chip dominance. The rally sparked broader gains in the tech sector.

“This is a historic moment,” said Wedbush analysts. “It reflects the AI Revolution entering its next phase, powered by Nvidia’s chips.”

Meta Platforms (NASDAQ: META) and other major tech names also traded higher.

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Fed Minutes: Rate Cuts Still Likely This Year, but Divisions Emerging

Minutes from the Fed’s June 17–18 meeting show most officials expect rate cuts later in the year, though opinions are beginning to diverge. Some policymakers favor cuts as early as July, while others see no need to ease policy just yet.

President Trump has been vocal in criticizing the Fed’s caution, again calling for lower rates and even for Chair Jerome Powell’s resignation. He recently cited a study claiming tariffs have not fueled inflation.

According to The Wall Street Journal, Trump’s adviser Kevin Hassett has emerged as a leading candidate to replace Powell, overtaking former Fed governor Kevin Warsh.

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Copper Becomes Latest Target in Trump’s Trade War

Markets started the week on shaky ground after Trump issued new tariff threats to major global partners. Although the effective date was pushed from July 9 to August 1, the president insisted no further delays are coming.

Trump also raised the possibility of a 50% tariff on imported copper, spotlighting his administration’s sector-specific trade strategy. Copper is vital to industries like electric vehicles, military, and infrastructure.

More tariffs—potentially on pharmaceuticals and semiconductors—may soon follow. Treasury Secretary Scott Bessent claimed tariffs have generated $100 billion so far in 2025, with a target of $300 billion by year-end.

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Goldman Sachs: Limited Upside for Stocks in the Near Term

Despite the recent surge, Goldman Sachs warned of limited near-term upside in equities due to stretched valuations and macroeconomic risks.

While neutral over the next three months, strategists led by Christian Mueller-Glissmann remain optimistic over the next year, citing long-term structural drivers, policy support, and strong shareholder returns.

Still, they caution: “In late-cycle phases, valuations tend to overshoot, and with weakening inflation trends abroad, the risk of a market pullback is now greater than that of a major rally.”

U.S. stocks ended Tuesday mixed as investors weighed the economic consequences of President Donald Trump’s renewed tariff threats. The S&P 500 slipped 0.1%, the Dow Jones Industrial Average fell 165 points (0.4%), and the Nasdaq inched up 0.03%.

Trump Holds Firm on Tariff Deadline

President Trump announced that his administration will not extend the August 1 deadline for implementing new reciprocal tariffs, which had previously been delayed from July 9. The decision has reignited concerns over a potential escalation in global trade tensions if negotiations stall.

On Monday, Trump issued formal notices imposing new tariffs on several countries. These include:

• 25% on imports from South Korea, Japan, Malaysia, and Kazakhstan
• 30% on South Africa
• 32% on Indonesia
• 35% on Bangladesh
• 36% on Thailand

These tariffs will apply independently of existing sector-specific tariffs, such as those on autos, steel, and aluminum.

Notably, India and the European Union were left out of this latest round of tariff letters—an omission analysts view as a possible signal of progress in ongoing trade talks with those regions.

Wolfe Research described the announcements as “decidedly mixed news” for markets. While the new tariffs and a recent preliminary agreement with Vietnam could generate up to $54 billion in additional annual revenue for the U.S. government, the looming deadline keeps the threat of renewed trade tensions alive.

Still, some investors remain confident that Trump will act pragmatically to avoid rattling markets—especially in light of past volatility following his “Liberation Day” tariff announcement.

“Nothing has materially changed yet—just letters were sent. But the direction of U.S. trade policy appears increasingly hawkish,” Wolfe analysts wrote in a note to clients.

Amazon Launches Extended Prime Day

Amazon (NASDAQ: AMZN) kicked off its Prime Day sales event on Tuesday, extending it to four days following customer feedback requesting more time to shop.

During the 2024 Prime Day, U.S. consumers spent $14.2 billion, up 11% from the prior year, according to Adobe Analytics data reported by Reuters.

Hershey Names New CEO

Hershey Co. (NYSE: HSY) shares declined after the company announced Kirk Tanner, an executive at Wendy’s, will take over as CEO starting August 18. He replaces longtime leader Michele Buck, who has served over two decades with the company.

SoFi Hits Record on Expansion into Private Markets

SoFi Technologies Inc. (NASDAQ: SOFI) surged to a new all-time high after unveiling plans to offer retail investors access to private companies in sectors including AI, machine learning, and space technology—part of its broader push into alternative investments.

Fed Minutes Awaited

Looking ahead, investor attention turns to the Federal Reserve’s June meeting minutes, due Wednesday. The Fed has held rates steady and signaled caution amid uncertainty over the inflationary effects of Trump’s evolving tariff agenda.

U.S. markets finished sharply higher on Thursday, with the S&P 500 and Nasdaq Composite closing at new record highs, as a stronger-than-expected June jobs report boosted confidence in the economy’s resilience amid ongoing trade tensions and geopolitical shifts.

The Dow Jones Industrial Average surged 344.11 points, or 0.77%, to end at 44,828.53. The S&P 500 rose 0.83% to 6,279.35, while the Nasdaq Composite climbed 1.02% to finish at 20,601.10. Both the S&P and Nasdaq set new all-time closing highs.

The June employment report, released by the Bureau of Labor Statistics, showed the U.S. economy added 147,000 jobs, topping expectations for 110,000. May’s figure was also revised upward to 144,000. In another positive surprise, the unemployment rate fell to 4.1%, bucking forecasts for an increase to 4.3%.

The upbeat data sent Treasury yields higher and led investors to dial back expectations for a near-term Federal Reserve interest rate cut. According to the CME Group’s FedWatch tool, traders now see a 95% chance the Fed will hold rates steady at its next meeting.

“This report pretty much rules out a July rate cut, and raises real doubts about whether we’ll see any cuts this year,” said Jed Ellerbroek, portfolio manager at Argent Capital Management, speaking to CNBC.

The strong report followed a weaker private payrolls figure from ADP on Wednesday, which showed a drop of 33,000 jobs and briefly raised concerns about economic momentum. But Thursday’s government data helped ease those fears.

Investors are also watching for progress on the recently announced U.S.-Vietnam trade deal, as President Donald Trump approaches the early July deadline of his 90-day tariff pause. While markets trading near record highs are vulnerable to pullbacks—especially if trade talks turn sour—Ellerbroek believes the broader sentiment remains constructive.

“There’s no doubt some companies will feel the impact of tariffs, but the market seems ready to weather it,” he added.

Meanwhile, attention remains focused on Trump’s major tax bill, which cleared the Senate on Tuesday and was advanced by the House on Thursday, setting the stage for a final vote.

Thursday marked a shortened trading day, with the New York Stock Exchange and Nasdaq closing at 1 p.m. ET ahead of the Independence Day holiday. U.S. markets will be closed Friday in observance of the holiday.

For the week, all three major indexes finished in the green: the S&P 500 rose 1.7%, the Nasdaq added 1.6%, and the Dow led the way with a 2.3% gain.

The S&P 500 closed at a new all-time high on Wednesday, lifted by a rebound in tech stocks and renewed optimism surrounding international trade agreements. These positive developments helped overshadow weaker-than-expected jobs data showing the first decline in private payrolls in over two years.

At the close (4:00 p.m. ET), the Dow Jones Industrial Average edged down 10 points, or 0.02%. The S&P 500 rose 0.5% to a record 6,226.63, while the tech-heavy NASDAQ Composite gained 0.9%.

Tech Recovery and Trade Momentum Drive Gains

Investor sentiment improved after President Donald Trump announced a new trade deal with Vietnam—the third agreement reached ahead of the July 9 deadline, when a pause on reciprocal tariffs is set to expire. The announcement follows recent progress on deals with China and Canada, and speculation that India may also reach an agreement in the coming days.

Trump stated he has no plans to extend the deadline and will begin formally notifying countries of the tariff rates they will face. According to a Financial Times report, the U.S. is now prioritizing smaller, phased trade agreements in an effort to secure quick victories before the deadline.

Private Sector Jobs Fall for First Time Since 2022

U.S. private payrolls declined by 33,000 in June, falling well short of expectations for a 99,000 increase. It marks the first monthly decline in private employment in over two years. May’s figures were also revised down to 29,000 from an initially reported 37,000—the lowest gain since March 2023.

ADP noted that job losses were concentrated in professional and business services, education, and healthcare. In contrast, modest gains were seen in hospitality, leisure, and manufacturing.

Despite a surprising increase in job openings reported Tuesday, overall hiring slowed, hinting at a potential cooling in the labor market. Investors are now focused on Thursday’s nonfarm payrolls report for further insight into employment trends.

At a central bank conference in Sintra, Portugal, Federal Reserve Chair Jerome Powell reiterated his data-dependent approach to monetary policy. Analysts at Morgan Stanley suggested that further labor market weakness could prompt the Fed to consider interest rate cuts as early as July.

Senate Pushes Forward with Trump’s Economic Plan

In a narrow vote, the Senate passed President Trump’s sweeping fiscal package—referred to as the “One Big Beautiful Bill.” The legislation now moves to the House of Representatives, which aims to approve it by July 4.

The bill, a centerpiece of Trump’s economic agenda, includes extensions of the 2017 tax cuts, new tax relief provisions, and increased spending on defense and border security. However, some Republicans have raised concerns about its long-term impact on the national debt, with nonpartisan estimates projecting it could add over $3 trillion to the federal deficit.

Tesla Rebounds Despite Renewed Trump-Musk Tensions

Tesla (NASDAQ: TSLA) shares bounced back on Wednesday after sharp losses the previous day, following renewed criticism from Trump. The former president accused CEO Elon Musk of taking excessive advantage of federal subsidies and called for a review of Tesla’s government support.

Despite the tension, Tesla reported second-quarter deliveries of 384,122 vehicles—down from 443,956 a year earlier but better than some analysts had feared.

Meanwhile, Microsoft (NASDAQ: MSFT) announced it would lay off up to 9,100 employees, or about 4% of its global workforce, in its largest workforce reduction since 2023. The company said the move is part of an ongoing restructuring strategy to adapt to changing business needs.