Global Markets Rally Amid Inflation Watch

Market-Moving News

Equities Rebound

U.S. stocks snapped back from the prior week’s sell-off, led by the NASDAQ’s 3.9% surge, which pushed it to a fresh record high. The S&P 500 rose 2.4% to close at 6,389.5, just shy of its all-time high, while the Dow gained 1.4%. The rebound was driven largely by renewed strength in technology and growth names, particularly the mega-cap “Magnificent 7,” which are on track to post 25.7% Q2 earnings growth versus 6.3% for the rest of the S&P 500

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Tariff Shock

The Trump administration’s reciprocal tariffs took effect Thursday, targeting dozens of countries. Notably, a 39% duty was imposed on Swiss goods and a 100% tariff on imported semiconductors, with exemptions for companies committing to U.S.-based chip production. The move has raised questions about downstream inflationary pressures and potential global trade retaliation.

Oil Prices Slide

WTI crude dropped 5.1% to just under $64/barrel, its lowest since late May, after peaking at $75 in mid-June. The drop reflects both supply-side stability and demand concerns tied to slowing global manufacturing activity.

Gold Hits Record

Gold futures briefly topped $3,500/oz Friday before retreating slightly, up nearly 30% YTD as investors continue to hedge against geopolitical and currency risk. This week’s spike came amid tariff escalation headlines and volatility in foreign exchange markets.

Bond Yields Tick Higher

Treasury yields edged up, with the 10-year at 4.28% (up 7 bps on the week) as markets recalibrated after last week’s flight-to-safety rally. The yield curve remains steepened versus year-end, with the 2-10 spread at 52 bps.

Growth vs. Value

Growth stocks extended their dominance, outperforming value for the second straight week. Large-cap growth rose 3.2% versus 1.4% for value, widening the YTD gap (growth +11.5% vs. value +6.7%).

CPI in Focus Next Week

With tariffs now in place, Tuesday’s Consumer Price Index will be closely watched. June CPI accelerated to 2.7% from 2.4%, but wholesale inflation remained subdued at 2.3%. Markets are on alert for signs of tariff-driven price pressures.

Investment Returns