Daily Newsletter 7/25/25

Earnings season is ongoing, with the market demonstrating resilience and selective strength in technology and AI-related stocks, despite certain earnings setbacks and sector-specific challenges.

This morning, U.S. index futures are mostly stable with slight gains.

The August 1 tariff deadline is poised to become a significant catalyst for the markets. If the tariffs—steep, country-specific import levies scheduled to take effect on that date—are implemented as planned, market volatility is likely to increase due to concerns over higher costs, supply chain disruptions, and potential retaliatory trade measures. Conversely, if the deadline is delayed or agreements are reached with certain countries, market reactions are expected to be more subdued.

The VIX remains at a moderate level, reflecting some underlying uncertainty amid ongoing trade and economic data developments but without a major spike in fear or volatility so far this week.