Major Indexes Stabilize After Monday’s Sell-Off
The major U.S. stock indexes showed mixed performance Tuesday, July 8, 2025, as markets today attempted to recover from Monday’s sharp decline triggered by President Donald Trump’s tariff announcements. At the market close, the S&P 500 edged up marginally by 0.21 points (+0.00%) to 6,230.19, while the Nasdaq Composite gained 25.74 points (+0.13%) to 20,438.25. The Dow Jones Industrial Average continued to face pressure, falling 123.58 points (-0.28%) to 44,282.78.
This modest stabilization comes after Monday’s significant losses, when all three major indexes closed sharply lower, with the Dow dropping 422.17 points, the Nasdaq falling 188.59 points, and the S&P 500 declining 49.37 points.
“Trade-war headlines are regaining momentum, but that doesn’t mean we’re in for a repeat of late March and early April,” said Bret Kenwell at eToro. “If there is confidence that negotiations will continue or deadlines will be extended, markets may continue to shake off the headlines.”
Tariff Developments Drive Market Sentiment
Market sentiment continues to be heavily influenced by President Trump’s recent tariff announcements. On Monday, Trump signed an executive order delaying reciprocal tariffs until August 1, rather than the previously announced July 9 deadline. The order included tariff threats of 25-40% on imports from 14 countries, including Japan, South Korea, and BRICS nations.
Treasury Secretary Scott Bessent is planning to visit Japan next week for the 2025 World Expo in Osaka, according to sources familiar with the matter. This visit follows Trump’s letter stating his intention to raise tariffs on all Japanese imports to 25%, effective August 1.
Craig Johnson at Piper Sandler noted, “While equities may come under some near-term pressure, investors are increasingly becoming numb to the tariff headlines and instead focusing on the trendlines.”
Sector Performance and Market Breadth
Small-cap stocks showed strength on Tuesday, with the Russell 2000 gaining 20.08 points (+0.91%) to 2,234.30, recovering from Monday’s 1.5% decline.
Market breadth remains at high levels despite Monday’s weakness, with approximately 73% of S&P 500 stocks trading above their 50-day moving averages. Leading sectors in this metric include information technology, materials, industrials, and consumer discretionary.
The VIX, Wall Street’s fear gauge, decreased 5.85% to 16.75 on Tuesday, suggesting easing investor anxiety after Monday’s spike.
Notable Stock Movements
Several stocks made significant moves in today’s market:
Tesla (TSLA) rebounded 1% early Tuesday after falling 7% on Monday following CEO Elon Musk’s plans for a new political party and renewed tension between Musk and Trump.
Amazon (AMZN) began its four-day Prime Day sales event, though early data from Momentum Commerce showed sales fell almost 14% in the first four hours compared to last year’s event.
Among top gainers, Bitmine Immersion Technologies (BMNR) surged 16.60%, QuantumScape (QS) jumped 15.19%, and Moderna (MRNA) rose 11.11%. Notable decliners included Fair Isaac Corporation (FICO), which fell 12.56%, and Sunrun (RUN), which dropped 12.47%.
Meta Platforms (META) made headlines after reportedly hiring a top AI executive from Apple (AAPL) as part of its push to build a “superintelligence” team.
Earnings Season Kicks Off
As the stock market today navigates tariff concerns, investors are turning their attention to the upcoming earnings season. Delta Air Lines (DAL) is scheduled to report earnings before the market opens on Thursday, July 10, marking one of the first major reports of the season.
Next week will see a significant ramp-up in earnings reports, with major banks leading the way. JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), and BlackRock (BLK) are all set to report before the market opens on Tuesday, July 15.
“Next week’s bank earnings could set the tone for the season,” noted market analysts. “Big bank stocks have been on a roll since late June, helped by a favorable yield curve and by major banks passing the Fed’s annual ‘stress tests.'”
Economic Data and Fed Outlook
Recent economic data showed consumer expectations for future inflation have settled back to levels last seen at the beginning of 2025, providing some relief to markets.
The Federal Reserve’s minutes from its latest meeting are scheduled for release tomorrow, July 9, which could provide further insights into the central bank’s thinking on interest rates.
Goldman Sachs Group strategists recently raised their outlook for U.S. stocks for the second time in two months, citing expectations that the Federal Reserve will act sooner to cut rates. The team led by David Kostin lifted their 12-month forecast for the S&P 500 index to 6,900 from 6,500 and increased the year-end target to 6,600 from 6,100.
Bank of America also boosted its outlook for U.S. equities, with strategists raising their S&P 500 year-end forecast to 6,300 from 5,600 and establishing a 12-month target of 6,600.
Looking Ahead: Treasury Auctions and Economic Calendar
Treasury auctions starting today could help set the path for yields as investors continue focusing on the latest tariff developments. The U.S. Treasury is conducting a $58 billion sale of three-year notes, the first in a trio of government auctions this week.
Key events on the economic calendar for the remainder of the week include:
– July 9: FOMC minutes
– July 10: Delta Air Lines (DAL) earnings and other economic data
– July 15: July Consumer Price Index and major bank earnings including JPMorgan Chase (JPM), Citigroup (C), BlackRock (BLK), and Wells Fargo (WFC)
As markets today navigate the complex landscape of tariff threats, upcoming earnings, and potential Fed action, investors remain cautiously optimistic. While short-term volatility may persist, many analysts believe that unless the trade situation significantly deteriorates, any pullback of 5-10% will likely be viewed as a buying opportunity by retail investors.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.