The S&P 500 Index closed down 0.07% on Tuesday, July 9, while the Dow Jones Industrials fell 0.37%. The Nasdaq 100 rose 0.07%. Hard-line trade rhetoric from President Trump regarding tariffs weighed on the market, as he stated that there would be no extensions to the August 1 deadline for reciprocal tariffs. The 10-year T-note yield increased to a two-week high of 4.42%, raising concerns about inflation and potential interest rate cuts.
In the lead-up to earnings season, projections for Q2 earnings for S&P 500 companies indicate only a 2.8% year-over-year increase, the smallest in two years. The market is focusing on new tariff updates and trade negotiations, with key reports including the FOMC meeting minutes due Wednesday and initial unemployment claims scheduled for Thursday.
Overseas markets showed gains, with the Euro Stoxx 50 rising 0.57% and China’s Shanghai Composite increasing by 0.70%. In the U.S., strong performances in chip stocks kept the Nasdaq 100 afloat, driven by significant gains in Intel, GlobalFoundries, and ON Semiconductor.
