US Imposes 50% Tariffs on Brazil; S&P 500 and Nasdaq Hit Record Highs
Key Takeaways
- U.S. imposed 50% tariffs on Brazil, impacting trade relations; Brazil seeks negotiations.
- S&P 500 and Nasdaq hit record highs, driven by Alphabet and AI optimism.
- India and UK sign FTA, aiming to double trade to $120B by 2030.
- Industrials surpassed tech in S&P 500, driven by economic strength and tariffs.
- ECB holds key interest rate steady at 2.0%, updates monetary policy strategy.
Top Stories
US imposes 50% tariffs on Brazil, impacting trade relations.
On July 26, 2025, the U.S. imposed 50% tariffs on Brazil, impacting bilateral trade relations. Brazil seeks negotiations to address the trade imbalances.
S&P 500 and Nasdaq hit record highs, Dow Jones falls, driven by Alphabet, AI, and Tesla's decline.
On July 24, 2025, the S&P 500 and Nasdaq reached record highs, driven by Alphabet's strong results and AI optimism, while the Dow Jones fell. Tesla's shares decreased due to poor performance, with the Dow Jones closing at 44,693.91.
S&P 500 and Nasdaq extend record highs on U.S.-EU trade deal optimism; Intel shares fall.
On July 26, 2025, the S&P 500 and Nasdaq extended their record-setting advance, driven by optimism surrounding a potential U.S.-EU trade deal. Intel's shares fell after forecasting steeper quarterly losses.
India and UK sign FTA, aiming to double trade to $120B by 2030.
On July 24, 2025, India and the UK signed a free trade agreement (FTA) expected to boost bilateral trade. The deal aims to double trade to USD 120 billion by 2030, with India shipping 99% of its exports to the UK duty-free.
Industrials sector surpasses tech in S&P 500, driven by economic strength and tariffs.
On July 24, 2025, the industrials sector surpassed technology stocks as the leading sector in the S&P 500. Industrial companies benefit from the economy's strength and tariffs spurring U.S. manufacturing.
ECB holds key interest rate steady at 2.0%, updates monetary policy strategy.
On July 24 and 25, 2025, the ECB decided to hold the key interest rate steady at 2.0 percent. The ECB also updated its monetary policy strategy.
Business News
US business activity increases, services sector surges.
In July 2025, U.S. business activity increased, with the Composite PMI Output Index reaching 54.6. The services sector saw a surge to 55.2, while manufacturing contracted to 49.5.
Tesla stock price plummets due to poor performance and Elon Musk's statements.
On July 24, 2025, Tesla's stock price plummeted, attributed to Tesla's poor performance and Elon Musk's statement about potential difficulties. The decline occurred despite the Nasdaq index hitting an all-time high.
Data Watch
Concerns raised about the reliability of U.S. economic data.
A Reuters poll and a report in The Economic Times highlight concerns about the quality of U.S. economic data. Experts cited declining survey participation and staff cuts at statistical agencies.
Finance Trends
Fed expected to hold interest rates steady in upcoming meeting.
The Fed is expected to keep interest rates unchanged in the upcoming meeting, with Bank of America economists suggesting the Fed may delay signals until the Jackson Hole symposium.
RBI focuses on price stability and efficient payment systems.
RBI Governor Sanjay Malhotra stated that the Reserve Bank of India's monetary policies are forward-looking, with the Monetary Policy Committee (MPC) focusing on the outlook. The MPC meeting is scheduled for August 4-6, 2025, with the monetary policy announcement on August 6.
US Treasury prices decline, yields increase.
On July 24, 2025, US Treasury prices declined for a second consecutive day, influenced by economic data and the Federal Reserve's stance. Yields increased across most tenors.
Dollar rises against yen and pound, driven by US economic data and trade sentiment.
On July 25, 2025, the dollar rose against the yen and the pound, showing little strength against the euro. The dollar's strength is attributed to positive US economic data and improved trade sentiment.
GBP declines as UK Composite PMI falls.
The GBP declines as the UK's Composite PMI fell to 51.0, below expectations. The Bank of England is expected to cut rates in August.
Global Economy
AI businesses thrive, consumer companies struggle due to tariffs and spending.
In July 2025, AI-focused businesses like Alphabet and SK Hynix thrived, while consumer companies like Nestle and General Motors struggled. The automotive sector is significantly impacted by tariffs, with Hyundai Motor reporting a 16% decline in Q2 profit.
Trump demands investment for tariff reductions, referencing Japan's deal; August 1 tariff implementation likely.
On July 24, 2025, President Trump stated that countries could lower tariffs by investing in the U.S., referencing Japan's $550 billion investment. The August 1st tariff implementation is likely.
Argentina and IMF reach agreement, unlocking $2B.
Argentina and the IMF reached a technical agreement for the first review of their program, enabling a disbursement of approximately US$2 billion. The program has had a strong start with continued disinflation and economic growth.
Tokyo core CPI rises 2.9% year-on-year.
In July 2025, Tokyo's core CPI rose 2.9% year-on-year, below the market's 3% forecast. The data shows a continued inflation trend.
India faces pressure to finalize trade deal with U.S. due to August 1 deadline.
India faces pressure to seal a trade deal with the U.S. as an Aug. 1 deadline looms, with tariffs set to increase to 26%. The deal could position India as a strategic partner for the U.S. against China.
U.S. tariffs could ease inflation in New Zealand, but dampen investment.
Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway said that U.S. tariffs could ease medium-term inflation pressures in New Zealand. Tariffs are expected to slow New Zealand's economic recovery over mid-2026.
Market Overview
U.S. market anticipates volatility due to tariff deadlines, Fed meeting, and earnings reports.
The U.S. stock market anticipates a volatile week around the end of July 2025 due to Trump's tariff deadline and key economic events. Investors will watch the Federal Reserve’s monetary policy meeting and earnings reports from tech companies.
Oxford Economics warns of market risks, including tariffs and delayed Fed rate cuts.
Oxford Economics cautioned that the stock market has risen 'too far, too fast,' warning investors are underestimating economic risks, including those from new tariffs and delayed Fed rate cuts. They anticipate the first Fed rate cut in December.
Wall Street opens mixed, S&P 500 and Nasdaq gain slightly.
On July 25, 2025, Wall Street opened with mixed results, with the Dow Jones up approximately 0.1%, the S&P 500 up 0.11%, and the Nasdaq down approximately 0.01%. The S&P 500 Index advanced 0.2% as of 9:59 a.m. in New York.
Bloomberg Surveillance discusses market trends, earnings, and economic factors.
On July 25, 2025, Bloomberg Surveillance discussed market trends, earnings, and economic factors. The show highlighted the S&P 500 reaching consecutive highs and mixed earnings reports.
Yahoo Finance reports on market movements, including Charter Communications and Boston Beer.
On July 25, 2025, Yahoo Finance reported on key stock market movements. Charter Communications experienced a 17% drop, while Boston Beer's revenue rose 1.5%, leading to a 9.3% stock increase.