Between July 2 and July 14, markets navigated strong corporate results and a flurry of new tariff announcements, exhibiting surprising resilience amid policy shifts.
It started on July 2 with optimism: the S&P 500 and Nasdaq hit fresh all-time highs, buoyed by a new trade deal with Vietnam and further gains in tech stocks like Tesla and Nvidia.1 Even the small-cap Russell 2000 rallied, and Treasury yields remained subdued as traders awaited the labor-market data.2
Then, tension crept back in mid‑July. President Trump announced 30–35% tariffs on imports from the EU, Mexico, Canada, Brazil, and Japan, set to begin August 1. Though stocks barely budged, bond markets reacted sharply. The 10‑year U.S. Treasury yield jumped toward 4.43%, while long‑dated sovereign yields in Europe and Japan also edged higher.3 Markets seemed to shrug off the news—at least for now—with the S&P holding near record levels and investors focusing on a solid earnings backdrop .
Beyond headline moves, high-yield corporate bonds continued to paint a picture of enduring investor confidence. Spreads remain tight—at levels not seen since 2021—signaling belief in economic strength despite policy noise.4
During the same period, commodities and currencies reflected the shifting sentiment. Gold and silver ticked up as safe-haven demand resurfaced, especially after the tariff news.5 Oil prices climbed modestly amid concerns about new U.S. sanctions on Russia and tighter supply outlooks.6 The U.S. dollar held firm, buoyed by yield strength and fresh trade-related uncertainty.
Earnings season kicked off, reinforcing the relatively upbeat tone. While not every report dazzled, the broader earnings landscape fueled optimism and softened the impact of policy-driven headwinds.
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Investor Takeaway
Markets remain steady even as tariff threats keep rising. Record highs in stocks and tight bond spreads suggest confidence in the economy—but spike in yields and gold’s safe-haven appeal signal caution. With earnings season underway and trade tension persisting, investors should stay alert for new economic data and policy developments.
- https://apnews.com/article/761ce86d55b997fd322241dea97844c4 ↩︎
- https://apnews.com/article/761ce86d55b997fd322241dea97844c4 ↩︎
- https://www.marketwatch.com/story/stocks-and-u-s-government-bonds-sell-off-in-tandem-friday-as-trade-jitters-cool-rally-95460259 ↩︎
- https://www.businessinsider.com/junk-bonds-stock-market-outlook-economy-yields-inflation-treasurys-2025-7 ↩︎
- https://www.thetimes.co.uk/article/business-live-latest-news-uk-companies-ftse-100-shares-trump-tariffs-x6g3thzxg ↩︎
- https://www.reuters.com/world/china/global-markets-wrapup-1-2025-07-14 ↩︎
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