Major Indexes Poised to Continue Rally as July Trading Begins
The stock market is set to kick off July on a positive note, with futures pointing higher early Tuesday as investors look to build on June’s impressive gains. S&P 500 futures are up 0.39%, Nasdaq 100 futures have added 0.54%, and Dow Jones Industrial Average futures have gained 254 points or 0.59% in premarket trading.
The market’s resilience comes after a strong performance in June, with the S&P 500 climbing 4.4%, the tech-heavy Nasdaq jumping nearly 6.1%, and the Dow adding approximately 3.7% for the month.
Premarket Movers: Dramatic Swings in Several Stocks
Tuesday’s premarket session is showing significant movement in several stocks. Among the biggest gainers, BioNexus Gene Lab Corp. (BGLC) is soaring an astounding 398.37% to $15.30 on heavy volume of over 11 million shares. Oragenics (OGEN) is also showing remarkable strength, up 116.23% to $8.26.
Wolfspeed (WOLF) is another standout performer, surging 91.20% to $0.76 in premarket trading with substantial volume exceeding 25 million shares. Prestige Wealth (PWM) and Atai Life Sciences (ATAI) are also showing strong gains of 47.84% and 29.22%, respectively.
On the downside, several stocks are facing significant pressure. HUYA Inc. (HUYA) is down 34.66% to $2.30, while APi Group Corporation (APG) has plunged 31.75% to $34.84. Globavend Holdings (GVH) is also struggling, falling 20.61% to $0.09 on heavy volume exceeding 12 million shares.
Magnificent Seven in Focus as Tech Leaders Navigate Mixed Landscape
The “Magnificent Seven” tech giants continue to exert outsized influence on market direction. Nvidia (NVDA) has been showing strength recently, rallying 2% on Monday and trading well above its 50-day and 200-day moving averages following a bullish move in recent weeks.
Tesla (TSLA) is facing some headwinds after Baird downgraded the stock from outperform to neutral early Monday, causing shares to lose 0.5% and give back some of Friday’s gains. The electric vehicle maker remains approximately 40% below its all-time high of $488.53 set on December 18.
Apple (AAPL) rose 0.5% on Monday as it attempts to build momentum above its 50-day moving average. The company has been dealing with challenges related to potential tariff impacts on hardware sales and legal cases threatening its services business.
Alphabet (GOOGL) is trading at a price-to-earnings ratio of just 19.8, making it the cheapest member of the Magnificent Seven.
Economic Outlook and Market Sentiment
Market sentiment has been boosted by several factors, including a calmer geopolitical environment following a cease-fire between Israel and Iran, hopes for U.S. trade agreements that could result in lower tariffs, and optimism that the Federal Reserve might cut interest rates in the coming months.
Investors are closely monitoring developments in the Senate, which is expected to continue voting on President Donald Trump’s “One Big Beautiful Bill.” The package narrowly passed a key procedural vote in the Senate on Saturday night but faces an uncertain path in the House, where some GOP lawmakers have expressed concerns about revisions in the latest version.
The yield on the 10-year Treasury note, which affects borrowing costs on a wide range of consumer and business loans, was at 4.27% on Monday morning, down from 4.28% at Friday’s close and near its lowest level since early May.
Corporate Earnings Outlook
As we enter July, investors are turning their attention to the upcoming earnings season. According to FactSet, more companies in the S&P 500 are issuing positive earnings guidance for the second quarter than average. Out of the approximately 110 companies that have provided quarterly EPS guidance, 51 have issued positive projections, which is above both the 5-year average of 42 and the 10-year average of 39.
However, earnings growth could be slowing down. Analysis shows that the estimated year-over-year earnings growth rate for the S&P 500 in the second quarter is around 5%, which could mark the lowest earnings growth for the index since the fourth quarter of 2023.
Global Markets and Trade Relations
Asian markets showed mixed performance on Monday as investors parsed details on trade negotiations and economic data. China’s manufacturing activity contracted for the third consecutive month in June, fueling hopes for more stimulus to cushion the impact of ongoing trade disruptions between China and the U.S.
Mainland China’s CSI 300 index added 0.37% to end the day at 3,936.08, while Hong Kong’s Hang Seng Index fell 0.87% to 24,072.28. Japan’s Nikkei 225 climbed 0.84% to end at 40,487.39 after hitting an over 11-month high earlier in the session.
Trade tensions remain a significant concern for markets. Investors are watching whether the Senate will be able to pass President Trump’s comprehensive bill in the coming hours. The market’s swift recovery in June came as investors were relieved that most of the Trump administration’s most dire tariff threats haven’t been implemented, though the situation remains fluid.
Looking Ahead: Key Events to Watch
As we move further into July, market participants will be closely monitoring several key events that could impact trading. The Federal Reserve’s next policy meeting will be particularly important as investors look for signals about potential interest rate cuts in the second half of 2025.
Corporate earnings reports will begin to flow in the coming weeks, providing crucial insights into how companies are navigating the current economic landscape. Particular attention will be paid to commentary regarding the impact of trade policies and inflation on business operations and outlook.
Additionally, ongoing developments in global trade negotiations and geopolitical situations will continue to influence market sentiment and potentially create volatility in the weeks ahead.
The bottom line: As markets premarket movers today show significant activity, major indexes appear poised to continue their upward momentum from June. However, investors should remain vigilant about potential headwinds from trade tensions, slowing earnings growth, and ongoing legal challenges facing some of the market’s most influential companies.
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.