Weekly Market Update

Weekly Update for the Grand Protector: Market Performance and Key Developments


Market Recap:
• The S&P 500 (^GSPC) closed at an all-time high for the fifth consecutive day.
• The Nasdaq Composite (^IXIC) also hit a new record high.
• The Dow Jones Industrial Average (^DJI) rose more than 1% for the week, closing just shy of its first record close in 2025.

Earnings and Trade Optimism:
• Alphabet (GOOG) beat earnings expectations, reinforcing AI as a key growth catalyst.
• Tesla's (TSLA) stock sank after an earnings miss, a continued slump in European sales, and warnings from CEO Elon Musk.
• The US-Japan trade pact lifted optimism for more deals before the August 1 deadline.

Speculative Trading:
• Goldman Sachs analysts warned about rising speculative trading activity, which may increase the risk of a market pullback.
• The Speculative Trading Indicator has risen sharply during the past few months, reaching its highest level on record outside of the 1998-2001 dot-com bubble era and 2020-2021 during COVID.

Trade Developments:
• The EU and US are closing in on an agreement that would impose a 15% tariff for most imports from Europe.
• Reports suggest the two sides don't see eye-to-eye on how to share profits from a $550 billion fund for US investment planned as part of the deal.

Federal Reserve Updates:
• President Trump downplayed the risk of Fed Chair Jerome Powell being ousted, easing market concerns about upheaval at the central bank.

Investor Sentiment:
• Investor appetite for investments such as initial public offerings (IPOs) has risen, along with special-purpose acquisition companies (SPACs).