Key Takeaways
- Tech Giants Soar: Microsoft (MSFT) surged approximately 8-9%, pushing its market capitalization past the $4 trillion mark to an estimated $4.14 trillion. Concurrently, Meta Platforms (META) rose 11%, adding $190 billion in value.
- Trade Tensions Persist: The U.S. faces critical tariff deadlines with Mexico, threatening 30% tariffs on imports, while Brazil confirmed 35.9% of its exports to the U.S. will face a new 50% tariff, despite partial exemptions.
- Oil Demand Rises: Shell CEO reported a significant increase in oil product demand, up by 1 million barrels per day so far this year.
- Economic Indicators Mixed: The US MNI Chicago PMI for July improved to 47.1, exceeding estimates, though remaining in contraction. The U.S. Dollar Index (DXY) touched 100 for the first time since May 29, signaling weakening demand.
- China Trade Expands: China’s international trade in goods and services hit 4.22 trillion yuan (approximately $588.3 billion) in June 2025, marking a 6% year-on-year increase.
Major U.S. indices opened higher today, with the S&P 500 up 0.76% at 6,411.21, the Dow Jones gaining 0.14% to 44,524.76, and the NASDAQ climbing 1.49% to 21,443.43 after market open. The rally was primarily driven by strong performances from technology heavyweights.
Microsoft (MSFT) led the charge, with shares surging approximately 8-9% and pushing its market capitalization beyond the $4 trillion threshold, reaching an estimated $4.14 trillion. Meta Platforms (META) also saw substantial gains, rising 11% and adding $190 billion in value.
Global trade remains a focal point, with significant developments on multiple fronts. The U.S. and Mexico are set for critical talks ahead of a tariff deadline, as President Trump threatens 30% tariffs if demands on cartel action are unmet. Markets tied to autos and agriculture are particularly exposed to these potential tariffs.
Brazil's Commerce Minister Alckmin confirmed that 35.9% of the country's exports to the U.S. will face a new 50% tariff, while 45% are exempt and 20% fall under global rates. This partial exclusion offers some relief, but key sectors remain exposed. Meanwhile, U.S. Treasury Secretary Scott Bessent stated that while trade negotiations with China are promising, a deal is "not 100% done" yet, with several technical details still pending.
In economic data, the US MNI Chicago PMI for July came in at 47.1, surpassing estimates of 42.0 and improving from the previous 40.4. Despite the improvement, the index remains below 50, indicating contraction in the manufacturing sector. The U.S. Dollar Index (DXY) touched 100 for the first time since May 29, signaling weakening demand amid shifting rate expectations, driven by softer Fed guidance and stronger foreign currencies.
In the energy sector, the Shell CEO reported a notable increase in oil product demand, which has grown by 1 million barrels per day so far this year. This indicates a robust demand environment for petroleum products.
Other notable developments include Fitch Ratings' assessment that U.S. banks are expected to face fewer operating and profitability headwinds given recent policy reversals. The IMF also weighed in on cryptocurrency, noting that Bitcoin consumes as much electricity as Argentina but isn't counted in GDP because it doesn't create traditional goods or services. However, the updated System of National Accounts now classifies crypto assets as national wealth for better economic measurement.
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.