On Wednesday, U.S. stock markets posted solid gains despite renewed protectionist rhetoric from former President Donald Trump. The Nasdaq 100 index ($IUXX) climbed 0.72% to reach a new all-time high, driven by a rally in mega-cap tech stocks. The S&P 500 ($SPX) rose 0.61%, while the Dow Jones ($DOWI) added 0.49%. A drop in Treasury yields supported the market: the 10-year yield fell by 6 basis points to 4.34%, fueling further equity inflows.
Bitcoin ($BTCUSD) surged more than 2% to a new record high, sparking renewed interest in crypto-related stocks. Shares of Coinbase (COIN), Riot Platforms (RIOT), MicroStrategy (MSTR), and MARA Holdings (MARA) gained between 4% and 6%.
The "Magnificent Seven" tech giants extended their bullish momentum, with NVIDIA (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) all rising over 1%. Apple (AAPL) closed 0.54% higher.
Investors largely shrugged off Trump’s aggressive trade proposals, including a planned 50% tariff on copper imports and up to 200% tariffs on pharmaceutical imports unless production is moved to the U.S. He also announced a 10% tariff on Indian goods due to India’s participation in BRICS, which he labeled as "a group created to harm the U.S."
Homebuilder stocks surged following a 9.4% weekly increase in mortgage applications, the highest in 2.5 years. D.R. Horton (DHI), Toll Brothers (TOL), Lennar (LEN), and PulteGroup (PHM) all gained more than 4–5%.
Other notable stock moves included:
AES Corp (AES): +19% on reports of potential acquisition interest.
Bloom Energy (BE): +17% after JPMorgan upgraded the stock to Overweight with a $33 price target.
Boeing (BA): +3% after delivering 60 aircraft in June — the highest in 18 months.
Fair Isaac (FICO): –6%, continuing its decline as regulators allow FICO alternatives for mortgage scoring.
Hershey (HSY): –4% as cocoa prices soared, pressuring margins.
Tandem Diabetes (TNDM): –4% after a downgrade by Citi.
Monster Beverage (MNST): –3% on margin concerns linked to higher aluminum tariffs.
Macro data showed mixed signals. U.S. wholesale sales unexpectedly fell 0.3% in May. FOMC meeting minutes revealed concerns that tariffs could have a more lasting impact on inflation than previously expected.
Meanwhile, deflationary pressure persisted in China: the producer price index fell 3.6% year-over-year — the steepest drop in nearly two years.
European markets ended mixed. The Euro Stoxx 50 gained 1.37%, while the Shanghai Composite slipped 0.13%. German and UK bond yields declined alongside U.S. Treasuries.
Markets now turn their attention to earnings season. According to Bloomberg, S&P 500 companies are expected to report just 2.8% year-over-year profit growth — the weakest pace in two years. Only six of eleven sectors are projected to post earnings growth, according to Yardeni Research.
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