Tariffs were the main focus of the first full week of July. Right out of the gate, President Donald Trump threatened 10% tariffs on any countries aligned with the "Anti-American" Brazil, Russia, India, China, and South Africa (BRICS) policies. Former aide and Tesla (TSLA) CEO Elon Musk claimed he would start a new political party, contributing to a Monday selloff. Tariff whiplash continued throughout the week, with Trump reaffirming the Aug. 1 deadline and imposing a 50% levy on copper imports.
Meanwhile, Fed meeting minutes suggested a split outlook on future interest rate cuts, and Nvidia (NVDA) became the first company to hit a market capitalization of $4 trillion as jobs data rolled in. By week's end, both the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) nabbed record highs, and Trump laid out plans to impose 35% and 50% tariffs on Canada and Brazil, respectively. A Friday pullback, however, had all three indexes eyeing weekly losses.
Options Traders Move In
We are an options trading company first and foremost, and there was plenty of activity to monitor this week. TSLA had a setback that traders did not miss, and airline earnings were also a focal point. Rare earths stock MP Materials (MP) and its meteoric rise on Thursday drew attention as well, after the company’s deal with the Pentagon. Options traders are now looking ahead to bank earnings, while Starbucks’ (SBUX) China business attracted bids of up to $10 billion.
Analyst Upgrades of Note
Analysts chimed in on several stocks. Vertiv (VRT) received a bull note for its artificial intelligence (AI) unit, as did semiconductor stalwartAdvanced Micro Devices (AMD). Netflix (NFLX) faced valuation concerns and casino stock MGM Resorts (MGM) saw one analyst move to the sidelines. Otherwise, most of the coverage this week leaned bullish, with alternative energy stock Bloom Energy (BE) also scoring an upgrade.
What to Expect Next Week
Looking ahead, earnings season is about to start. In the meantime, keep an eye on these initial public offerings (IPOs) that could make a big splash. Our Indicator of the Week tackles what a rise in bullish sentiment could mean, and Senior V.P. of Research Todd Salamone has already done all the prep work for expiration week. If you are now looking for some stocks to buy and hold for the rest of the year, we have you covered with these 44th Anniversary picks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
