By Alex Financials

Trade Tensions & Tariff Update 📉

Markets tread water as Trump delays tariff deadline
President Trump postponed the implementation of new tariffs on imports from 14 countries—including Japan, South Korea, Bangladesh—from July 9 to August 1. While this delay offered a buffer, it didn’t drastically shift investor sentiment. U.S. stocks wavered: the Dow fell ~0.9%, S&P 500 dropped ~0.8%, and the Nasdaq slid ~0.9% as markets remained cautious.

Asian and European markets responded with cautious optimism, with gains in Japan, South Korea, and Australia, reflecting the tariff delay’s mild relief .

Big Tech & Sector Rotation

Tech rebounds while clean energy lags
In pre‑market futures, Tesla ($TSLA) rebounded ~1% following a Monday drop tied to Elon Musk’s new political party announcement. Meanwhile, clean‑energy stocks such as First Solar ($FSLR), SolarEdge ($SEDG), and Enphase ($ENPH) slipped 2‑4% on tariff and subsidy concerns.

Meta ($META) gained modestly after hiring a top Apple AI executive to strengthen its AI ambitions .

Earnings, Outlooks & Forecasts

Big banks raise S&P 500 targets ahead of rate cuts

• Goldman Sachs bumped its S&P 500 target to 6,900 in 12 months (from 6,500), anticipating Fed rate cuts and strong earnings.

• Bank of America increased its year-end target to 6,300, confident in tech’s resilience and a lower equity risk premium.

However, analysts caution that the current rally is narrow—driven by mega‑caps—and could leave smaller stocks behind.

Commodities & Yields

Treasuries higher, oil steady, gold dips

• The 10-year Treasury yield edged up to ~4.4%, as investors balanced the prospect of Fed cuts with trade uncertainty.

• Oil prices eased slightly after OPEC+ output increases, yet stayed relatively stable.

• Gold tumbled along with oil on Thursday trading.

Index Recap & Breadth

Indexes dip; VIX jumps; market breadth concerns

• Monday’s sharp declines led to a 3.4‑to‑1 decline‑advance ratio on the NYSE, and 2.74‑to‑1 on Nasdaq, with VIX rising ~1.8% to ~17.8.

• The S&P 500 upswing is narrow, supported by few stocks—raising warnings that many names aren’t participating in the rally.

What’s Ahead

Key catalysts on deck

• Fed minutes from the June meeting are due Wednesday. No rate cuts expected now, but the tone will be parsed for future guidance.

• Earnings season kicks off with Delta Airlines ($DAL) reporting Thursday.

• The trade narrative continues, with the revised August 1 tariff deadline looming. Any fresh news could swing sentiment quickly.

📌 In Summary

Markets are in a cautiously optimistic phase. The tariff delay provided temporary relief, but uncertainty still weighs. Large-cap tech remains the primary rally engine, while other sectors lag. Analysts are upbeat on equities, with raised targets, but narrow market participation and macro risks warrant vigilance.