Weekly Market Update

Weekly Market Update for the Grand Protector

As we end July, it's clear that market sentiment has been a rollercoaster ride.
• US and EU strike trade pact: The US and European Union agreed to a deal setting tariffs on Europe's goods at 15%, with Trump calling it "the biggest of them all." However, EU leaders offered a mixed assessment.
• Big Tech earnings: Meta Platforms (META) and Microsoft (MSFT) led the way, posting strong earnings and cloud strength. Meta stock shot up over 11% while Microsoft jumped as much as 8%.
• Fed keeps rates steady: The Federal Reserve kept interest rates unchanged at its July meeting, with two Fed governors dissenting.
• Inflation accelerates: The Personal Consumption Expenditures (PCE) index showed price increases accelerated in June, with inflation remaining above the Fed's 2% target.
• Jobs report shows labor market slowdown: The July jobs report released Friday morning showed weaker-than-anticipated jobs growth, with the economy adding some 73,000 jobs versus 104,000 expected. The unemployment rate ticked up to 4.2%.
• Trump hits US trading partners with tariffs: President Trump officially hit virtually every US trading partner with sweeping tariff hikes on Friday.

Market Performance

The Dow Jones Industrial Average (^DJI) fell more than 500 points on Friday, or about 1.2%. The S&P 500 (^GSPC) dropped roughly 1.6% to post its worst day since May. The tech-heavy Nasdaq Composite (^IXIC) sank around 2.2%.

Earnings Highlights
• Meta Platforms (META): stock shot up over 11%
• Microsoft (MSFT): jumped as much as 8%
• Amazon (AMZN): earnings release late Thursday sent the stock tumbling
• Apple (AAPL): shares declined despite results that beat expectations, boosted by surprisingly strong iPhone sales

Economic Data
• July jobs report: showed weaker-than-anticipated jobs growth, with the economy adding some 73,000 jobs versus 104,000 expected. The unemployment rate ticked up to 4.2%.
• Personal Consumption Expenditures (PCE) index: showed price increases accelerated in June, with inflation remaining above the Fed's 2% target.