Daily summary: Big Techs lead Wall Street recovery, Europe rallies, FX muted (09.07.2025)

Wall Street returns to gains as investor concerns over an overly aggressive U.S. trade policy fade and uncertainty over the final deadline for negotiations declines (Donald Trump emphasized there would be no further extensions past August 1). Among the indices, the S&P 500 is up (+0.3%), Dow Jones (+0.3%), Nasdaq (+0.65%), and Russell 2000 (+0.6%).

Market sentiment was also supported by strong demand for 10-year U.S. Treasuries, breaking a five-day sell-off streak. Yields dropped to around 4.35%.

U.S. President Donald Trump announced on Truth Social that starting August 1, the United States will impose new tariffs on imports from several countries, including the Philippines, Brunei, Moldova, Algeria, Iraq, and Libya (tariffs ranging from 20–30%).

Big Tech is the main driver of today’s gains on Wall Street. Bloomberg’s Magnificent 7 Index is up over 0.9%, led by META (+1.83%), while Nvidia briefly surpassed a $4 trillion market cap milestone (+1.65%). Only Tesla (-1.1%) and Apple (-0.54%) are trading in the red.

Peter Navarro criticized Apple for maintaining production in China despite U.S. pressure, accusing the company of avoiding tariffs through influence. The Trump administration is threatening a 25% tariff on iPhones if Apple doesn’t increase U.S.-based production.

European markets ignored the announcement of tariffs on copper and pharmaceuticals and moved into strong gains (DAX: +1.42%, CAC40: +1.44%, FTSE MIB: +1.59%, FTSE 100: +0.14%).

The U.S. dollar is slightly higher today, and the newly announced tariffs by Trump failed to spark a larger reaction. The U.S. President again criticized the Fed’s monetary policy, suggesting a possible 300 basis point rate cut.

Forex market volatility was limited, with most G10 currencies trading in a narrow range. The Canadian dollar saw the biggest correction against the USD (USDCAD: +0.25%), while the Japanese yen was the strongest performer (USDJPY: -0.15%). EURUSD dropped 0.15% to 1.171, and AUDUSD extended gains by another 0.1%.

Natural gas prices fell nearly 5%, amid high storage levels and forecasts for cooler weather in the central U.S.

Oil prices rose slightly from $69 to $70.5 per barrel following a DoE report showing a sharper-than-expected drop in gasoline inventories. Crude oil inventories rose by over 7 million barrels (vs. -1.7 million forecast and +3.84 million previous). Gasoline inventories fell by -2.65 million barrels (vs. -1.7 million forecast and +4.18 million previously).

Cryptocurrency market sentiment is mixed, though Bitcoin is rising above $109,000.

According to media reports, OpenAI plans to launch its own AI-powered web browser. Alphabet (GOOGL.US) shares barely reacted to the news. Amazon shares pulled back slightly after an unexpected decline in Amazon Prime Day sales.