Key Facts
• On July 11, the S&P 500 index ended its record-breaking streak.
• Nearly 400 S&P 500 stocks declined, but large-cap tech stocks like Nvidia performed well.
• Kraft Heinz shares surged on reports of a potential business split.
• U.S. Treasury yields rose amid inflation concerns, with the 10-year yield reaching 4.42%.
• President Trump announced a 35% tariff on some Canadian imports starting August 1.
• Analysts predict U.S. effective tariff rates to stabilize near 15% by year-end.
• UBS forecasts the S&P 500 could reach 6,500 by June 2026 despite volatility.
• Bank of America strategists noted low expectations for Q2 earnings, with a 2.8% profit growth forecast.
• Delta Airlines is repurposing engines from European Airbus planes to address shortages.
• Oil prices rebounded, with WTI crude rising 2.8% to $68.45 per barrel.
• Gold prices climbed 1.1%, reaching $3,359.17 per ounce.
• The U.S. dollar index rose 0.7% for the week, its strongest performance since February.
Summary
The S&P 500 index paused its record-breaking momentum on July 11, with nearly 400 constituent stocks declining. However, large-cap tech stocks like Nvidia helped offset losses. Kraft Heinz shares surged on reports of a potential business split, while U.S. Treasury yields rose amid inflation concerns, with the 10-year yield hitting 4.42%. President Trump announced a 35% tariff on certain Canadian imports starting August 1, contributing to market volatility. Analysts predict U.S. tariff rates to stabilize near 15% by year-end, with the S&P 500 potentially reaching 6,500 by mid-2026. Oil prices rebounded, driven by speculation of new U.S. sanctions on Russian crude, while gold prices also rose. The U.S. dollar index recorded its best weekly performance since February, reflecting market reactions to trade and economic uncertainties. Despite challenges, analysts expect Q2 earnings to surpass low expectations, providing potential market support.
