Stock Market Update: July 2025
Traders began the second half of 2025 with a shift away from technology stocks.
Overview
Traders worked on the floor of the New York Stock Exchange during morning trading on April 07, 2025, in New York City.
Stock futures showed minimal movement on Tuesday evening, following a shift in investor interest away from technology stocks at the start of the second half of the year.
Market Performance
- Futures linked to the Dow Jones Industrial Average increased by 9 points.
- S&P 500 futures were slightly higher.
- Nasdaq 100 futures rose by 0.1%.
During regular trading: - The Dow Jones Industrial Average increased by 400 points. - The S&P 500 decreased by 0.1%. - The Nasdaq Composite declined by 0.8% as demand for technology stocks decreased.
The information technology sector of the S&P 500, which includes companies such as Nvidia, Palantir, and Advanced Micro Devices, declined by more than 1% on Tuesday. The communications services sector also fell by over 1%. Investors shifted focus toward health care and materials sectors. Increases in Amgen, Johnson & Johnson, and UnitedHealth contributed to the Dow's gains.
Legislative Developments
President Donald Trump's tax-and-spending bill passed the Senate by a narrow margin on Tuesday. The bill will return to the House, where some GOP lawmakers have not yet expressed support.
"We expect to see more volatility in fixed income, even once they get the bill passed, whatever that looks like," said Jose Rasco, HSBC Global Private Banking and Wealth Management Americas CIO on "Closing Bell: Overtime." "That's going to bleed over into the equity markets."
Rasco also commented that this period of market volatility may be brief.
"Once these things get resolved and once the [Federal Reserve] gets back in gear, there's a lot of upside here," Rasco said.
Trade and Economic Data
Traders are monitoring developments on trade agreements as the 90-day pause on certain tariffs is set to expire next week.
On Wednesday, investors are awaiting ADP's private payrolls report, which is scheduled for release before the market opens. Economists surveyed by Dow Jones expect private employers to have added 120,000 jobs in June, compared to 37,000 jobs added in May.
The primary economic event for this holiday-shortened week will be the June jobs report, which is due on Thursday morning.