Weekly Market Commentary

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Week of Jul. 7 through Jul. 11, 2025

The S&P 500 index edged down 0.3% this week amid the Trump administration's latest tariff threats.

The S&P 500 ended Friday's session at 6,259.75, slightly below record highs it just reached a day earlier. The market benchmark hit a new intraday high on Thursday at 6,290.22 before ending the day's session at 6,280.46, its highest closing level ever. The index is up 0.9% for the month and 6.4% for the year.

President Donald Trump Thursday evening said the US will raise its tariff on imports from Canada to 35% from a prior rate of 25%. Goods that comply with the nations' free-trade agreement would be exempt for now, a White House official said, but investors were still concerned by the threat.

Trump also warned of plans to impose blanket tariffs of 15% to 20% on most trading partners, up from a 10% baseline rate, in an interview with NBC.

The financial sector had the largest percentage drop of the week, down 1.9%, followed by a 1.8% decline in consumer staples and a 1.2% slip in communication services. Real estate, health care and materials also edged lower.

Progressive (PGR) was among the hardest-hit financial stocks, falling 6.4% as Morgan Stanley downgraded its investment rating on the stock to equalweight from overweight. Progressive's prior investment thesis of unencumbered growth and margin expansion is nearing its end amid rising competition and valuation pressures, the firm said in a note to clients.

In consumer staples, shares of Conagra Brands {CAG) had the largest percentage drop of the week, sliding 7.6% as the packaged food company reported weaker-than-expected fiscal fourth-quarter results. Conagra also issued a full-year earnings outlook below market estimates amid persistent macroeconomic uncertainty and elevated inflation.

On the upside, the energy sector climbed 2.5%, followed by a 0.8% rise in utilities. Industrials, technology and consumer discretionary also eked out slight gains.

The energy sector's gains came as crude oil futures also rose. Risers included shares of Halliburton HAL, up 7.3%, and Hess HES, up 6.4%.

In utilities, AES {AES) shares added 9.3% amid takeover rumors. The company is exploring options, including a potential sale of the company, due to takeover interest from large investment firms, Bloomberg reported, citing people with knowledge of the matter.

Quarterly earnings reports next week are expected from companies including JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), Johnson & Johnson (JNJ), Bank of America (BAC), Morgan Stanley (MS), Goldman Sachs (GS), Netflix (NFLX), PepsiCo (PEP) and American Express (AXP).

Economic data will include the June consumer and producer price indexes, as well as June retail sales, housing starts and building permits.

Provided by MT Newswires