Stock Market Update Monday July 7, 2025
- Jul 7, 2025
- 3 min read
Stock Market Update Monday July 7, 2025 U.S. Equities Drop on Renewed Tariff Uncertainty
The S&P 500 declined 0.79%, the Nasdaq Composite shed 0.92%, and the Dow Jones Industrial Average dropped 0.94% after President Trump announced the imposition of 25% tariffs on select Japanese and South Korean imports, effective August 1. The move reversed last week’s bullish momentum, which had pushed major indices to record highs amid hopes of de-escalating trade disputes. The surprise policy pivot prompted broad-based profit-taking and risk-off positioning across sectors.
Away From Stocks: The Treasury curve experienced bear steepening, with the 2-year yield rising 2 basis points to 3.90% and the 30-year yield climbing 6 basis points to 4.92%, reflecting heightened inflation and policy risk expectations. WTI crude oil advanced to $68 per barrel, while gold erased early losses to close flat near $3,336 per ounce. Bitcoin remained steady around $108,000. Volatility edged higher, with the VIX ticking up toward the 18 level, signaling a modest uptick in investor caution.
Macro News:
July 8
6:00 AM – June Small Business Optimism
Estimate: 98.7
Last: 98.8
11:00 AM – June NY Fed 1-Year Inflation Expectations
Estimate: n/a
Last: 3.2
July 9
2:00 PM – June 18 FOMC Meeting Minutes
Tesla Plunges as Musk’s Political Ambitions Rattle Investors
Tesla shares sank nearly 8% following CEO Elon Musk’s announcement of a new political party, escalating tensions with President Trump and injecting fresh political risk into the stock. The move amplified market volatility and renewed concerns over Musk’s focus and corporate governance at a critical time for the EV giant.
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