Tariffs, Tech Milestones, and Market Caution
Week Ending July 11, 2025
Markets ended the week modestly lower as investors weighed fresh tariff announcements against ongoing enthusiasm for AI and tech leadership. Despite the headline risks, the S&P 500 and Nasdaq briefly hit new record highs before giving back some ground to close the week.
Market Overview
Weekly Performance (July 7-July 11, 2025)
S&P 500: –0.31%
Nasdaq Composite: –0.08%
Dow Jones Industrial Average: –1.02%
MSCI EAFE (International Developed Markets): –0.43%
TSX (Toronto Stock Exchange): –0.27%
The Return of the Tariffs
Markets started the week on the defensive after the White House announced new tariffs targeting 14 countries, including a 25% tariff on imports from South Korea and Japan. Additional tariffs on seven more countries followed midweek, briefly pressuring stocks before investors began to price in the possibility of adjustments or rollbacks.
Later in the week, markets rallied on renewed AI momentum and a dovish signal from the Federal Reserve. Minutes from the June Fed meeting showed a growing number of Committee members open to adjusting interest rates later this year if economic conditions warrant.
Even a 50% tariff on Brazilian imports, announced late Wednesday, wasn’t enough to stall Thursday’s rally as the S&P 500 and Nasdaq pushed to new all-time highs.
However, sentiment shifted again Thursday evening when the White House announced a 35% tariff on Canadian imports and hinted at further trade measures. Markets opened lower on Friday and drifted sideways to close out the week.
The “T” Word: Trillion
While tariffs captured most of the headlines, another “t word” quietly made market history: trillion.
More specifically, $4 trillion in market capitalization.
The world’s largest AI chipmaker became the first company to cross the $4 trillion market cap threshold—doing so intraday on Wednesday and closing above it for the first time on Thursday.
Why does that matter? In a market-cap weighted index like the S&P 500, mega-cap stocks have an outsized impact on overall performance. The five largest companies now make up roughly one-third of the S&P 500, magnifying their influence on market returns.
Key Economic Reports: Week Ahead (July 14–18, 2025)
Tuesday, July 15
Consumer Price Index (CPI)
Industrial Production
Capacity Utilization
Fed Speakers: Boston Fed President Collins, Dallas Fed President Logan
Wednesday, July 16
Producer Price Index (PPI)
Fed Beige Book
Thursday, July 17
Weekly Jobless Claims
Retail Sales
Import Price Index
Business Inventories
Home Builder Confidence
Friday, July 18
Housing Starts
Building Permits
Consumer Sentiment
Corporate Earnings: This Week
Tuesday
JPMorgan Chase (JPM)
Wells Fargo (WFC)
BlackRock (BLK)
Citigroup (C)
Wednesday
Johnson & Johnson (JNJ)
Bank of America (BAC)
Morgan Stanley (MS)
Goldman Sachs (GS)
Progressive (PGR)
Prologis (PLD)
Thursday
Netflix (NFLX)
GE Aerospace (GE)
Abbott Laboratories (ABT)
PepsiCo (PEP)
Marsh & McLennan (MMC)
Interactive Brokers (IBKR)
Friday
American Express (AXP)
Charles Schwab (SCHW)
“The trust of the innocent is the liar’s most useful tool.”
– Stephen King
Seven people stand in a square room measuring 30' x 30'. Each can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?
Last Week's Riddle:Alexandra’s mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child's name?
Answer:Alexandra
Joanne's dog, Taz, is living his best life while camping.
Footnotes & Sources
1. WSJ.com, July 11, 2025
2. Investing.com, July 11, 2025
3. CNBC.com, July 7, 2025
4. CNBC.com, July 8, 2025
5. WSJ.com, July 9, 2025
6. MarketWatch.com, July 9, 2025
7. CNBC.com, July 10, 2025
8. CNBC.com, July 11, 2025
9. WSJ.com, July 9, 2025
10. MarketWatch.com, July 10, 2025
11. IRS.gov, March 6, 2025
12. Downshiftology.com, March 18, 2025
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