DFG Navigator Archives | July 2025

Your Capital Markets Snapshot: Nasdaq Reaches New All-time Highs

Last week, U.S. capital markets continued their upward momentum, with the S&P 500 and Nasdaq reaching new all-time highs, buoyed by strong corporate earnings and resilient economic data. Retail sales rebounded sharply in June, and inflation data remained within manageable levels, helping to support investor sentiment. Earnings season kicked off with better-than-expected results from major banks and tech firms, although some stocks like Netflix saw muted reactions despite strong reports. Geopolitical tensions added some uncertainty, particularly with the potential for US tariff policy to influence inflation and trade dynamics going forward. Meanwhile, the Federal Reserve signaled a cautious stance, with markets pricing in potential rate cuts later this year. Overall, despite some volatility and policy uncertainty, markets remained supported by solid fundamentals and investor optimism heading into the heart of earnings season.

Your Capital Markets Snapshot: U.S. Capital Markets Continued Strong Upward Momentum

Last week, U.S. capital markets continued their strong upward momentum, with the S&P 500 and Nasdaq reaching new all-time highs. This rally was fueled by a combination of easing geopolitical tensions in the Middle East, falling oil prices, and a robust performance from mega-cap tech stocks. A better-than-expected U.S. jobs report also boosted investor sentiment, showing 147,000 new jobs added in June and a slight drop in the unemployment rate to 4.1%. However, the labor force participation rate declined, and private sector hiring was relatively soft, tempering some of the optimism. Markets also responded positively to a new U.S.-Vietnam trade agreement, which provided clarity on tariffs despite higher rates than previously expected. Meanwhile, Congress passed a significant tax and spending bill, which is expected to offer a modest economic boost in 2026 but raises concerns about long-term federal debt. Bond yields rose as the strong jobs data reduced expectations for imminent Fed rate cuts, with the 2-year Treasury yield climbing notably. Overall, while bullish momentum remains strong, markets may face volatility ahead due to potential trade developments and overbought conditions.

Your Capital Markets Snapshot: US Equity Markets Surged

US equity markets surged as the S&P 500 and Nasdaq both climbed over 3% and posted record highs. Megacap technology stocks led the charge, driven by strong earnings and AI-related optimism. The broader rally was partially fueled by easing geopolitical tensions in the Middle East, which led to a sharp drop in oil prices. U.S. crude fell from over $75 to around $65 per barrel. This decline helped ease inflation concerns and supported consumer sentiment. Meanwhile, the Federal Reserve signaled a continued path toward rate cuts, with markets now pricing in two to three cuts by year-end. Increased expectations of lower long-term rates helped further boost equity valuations. However, trade tensions resurfaced late in the week as the U.S. abruptly ended talks with Canada over a digital services tax, triggering some intraday volatility.

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