Stocks Finish Mixed on Strength in Chip Makers and Higher Bond Yields
The stock market saw mixed results on Tuesday, with the S&P 500 Index closing down 0.07%, the Dow Jones Industrials Index down 0.37%, and the Nasdaq 100 Index up 0.07%. September E-mini S&P futures were down 0.07%, while September E-mini Nasdaq futures were up 0.06%.
The market was impacted by hard-line trade rhetoric from President Trump, who stated that the US won’t offer extensions to the August 1 deadline for reciprocal tariffs. This, along with higher bond yields reaching a two-week high, led to concerns about inflation and potential interest rate cuts by the Fed. Despite this, chip makers and energy producers saw gains, supporting the overall market.
While stocks initially received support from recent tariff announcements suggesting room for further negotiations, concerns lingered about the upcoming earnings season. Consensus projections show a modest rise in Q2 earnings for S&P 500 companies, with only six of the eleven sectors expected to post an increase.
This week’s market focus will be on new tariff and trade deal news, as well as the release of the FOMC meeting minutes on Wednesday and weekly initial unemployment claims on Thursday. Overseas stock markets closed higher on Tuesday, with the Euro Stoxx 50 and China’s Shanghai Composite reaching multi-week highs.
Interest rates saw fluctuations, with 10-year T-notes closing down and yields rising to a two-week high. European government bond yields also moved higher, with weaker-than-expected German trade news impacting market sentiment. Swaps are currently discounting the chances of a rate cut by the ECB at the July 24 policy meeting.
In US stock movements, chip stocks and energy companies led gains on Tuesday, while chemical-making companies rallied after the US EPA withdrew new use rules for 18 chemicals. Several companies saw upgrades and downgrades, impacting their stock prices.
Earnings reports for July 9, 2025, include companies like AZZ Inc, Barnes & Noble Education Inc, and Ciena. It’s important to note that the information provided in this article is for informational purposes only. For more details and original content, you can visit Barchart.com.
