Weeky Market Recap and Outlook - 7.11.25

Summary

Tariff news was front and center in the markets this week, with the Trump Administration announcing a large new set of tariffs and tariff adjustments on 22 countries. This did not stop the NASDAQ and S&P 500 from hitting record highs this week, though many equities still fell due to tariff uncertainty. Major financial institutions are set to release earnings next week, with anticipated growth due to an increase in M&A activity and abundant trading opportunities. Investors are also waiting for the upcoming release of the consumer price index, and federal reserve meeting at the end of the month, which could bring news of possible rate cuts due to inflation and economic uncertainty. The Fed is also evaluating the impact of tariffs on consumers, and news on this could be shared during the upcoming meeting. This comes as President Trump continues his attack towards Jerome Powell, with the goal of gaining more influence within the Fed. Bottom Line: Markets were down due to newly announced tariffs and tariff changes, and investors wait in anticipation for news from the Fed and upcoming earnings reports.

Our Perspective

The volatility in the markets this week opened a multitude of trading opportunities, as many sectors were affected due to recent news. We specifically found short positions in a variety of equites were a strategic move this week, as many stocks continued falling as more tariff news was announced. Our outlook on the economy is somewhat neutral. The rise of tariffs and inflation continues to affect the consumer, and the current unemployment rate is also a point of concern. We also see long term opportunity in the shift in effort towards bringing manufacturing back to the states, and the positive effect that it would have on the economy. Moving forward we would continue to predict a weaker market in the short term, but this could easily change due to tariff news or Fed announcements.

*The views expressed in this article are for informational and analytical purposes only and do not constitute financial advice. All opinions reflect current market interpretations and are subject to change based on new developments. Quantovate AI is not a registered investment advisor. Please conduct your own research or consult with a financial professional before making investment decisions.