08 July 2025 Market Close & Major Financial Headlines: Trump’s Trade Gambit Causes Investors to Hold Breath

Gary Hall

and

Steven Hansen

Jul 08, 2025

The Dow closed down 166 points or 0.37%,
NASDAQ closed up 6 points or 0.03%,
S&P 500 closed down 4 points or 0.07%,
Gold $3,314 down $29.3 or 0.88%,
WTI crude oil settled at $68 up $0.53 or 0.78%,
10-year U.S. Treasury 4.413 up 0.018 points or 0.410%,
USD index 97.53 up $0.05 or 0.05%,
Bitcoin $108,791 up $681 or 0.62%, (24 Hours),

*Stock data, cryptocurrency, and commodity prices at the market closing

Today’s Highlights – Market Summary

On July 8, 2025, global stock markets were primarily influenced by President Donald Trump’s announcement yesterday of sweeping new tariffs targeting countries such as Japan, South Korea, Malaysia, and several BRICS nations, with duties ranging from 25% to 40% and a potential additional 10% for BRICS members if no trade deals are reached. This escalation in trade tensions led to a sharp sell-off on Wall Street yesterday. However, today, market reactions were more muted and futures stabilized, as Trump extended the tariff deadline to August 1 and signaled openness to further negotiations, which investors interpreted as a possible negotiating tactic rather than an imminent economic threat. Asian and European markets remained relatively steady, and the U.S. dollar strengthened, while oil prices rose on supply concerns despite OPEC+ increasing output. Overall, while trade policy uncertainty and political developments weighed on sentiment, markets showed resilience as investors awaited clarity on potential trade agreements before the new tariffs take effect.

Read the June 2025 Economic Forecast: Recession Winds - Is the Glass Half Empty or Half Full

Today’s Economic Releases Compiled by Steven Hansen, Publisher:

The NFIB Small Business Optimism Index held steady in June 2025, slipping just 0.2 points to 98.6, which remains slightly above the 51-year average of 98. The most significant factor in this modest decline was a notable rise in business owners reporting excess inventories. The Uncertainty Index dropped by five points to 89, indicating reduced uncertainty among small firms. Taxes resurfaced as the top concern, with 19% of owners naming it their most pressing issue—the highest rate since July 2021. Expectations for better business conditions and higher real sales volumes both fell by three points, and plans for capital outlays edged down. Labor quality remained a key challenge for 16% of respondents, while inflation concerns dropped to an 11% share, the lowest since September 2021, reflecting easing price pressures. Business health perceptions worsened: only 8% rated their business as excellent (down six points), and 49% as good (also down six), while those reporting fair or poor health increased, underscoring persistent challenges despite stable overall optimism.

According to the Federal Reserve:

In May 2025, consumer credit increased at a seasonally adjusted annual rate of 1.2 percent. Revolving credit decreased at an annual rate of 3.2 percent, while nonrevolving credit increased at an annual rate of 2.8 percent.

Our take, using year-over-year (YoY) instead of month-over-month annualized - total consumer credit grew 0.4% YoY. Revolving credit growth (primarily credit cards) declined 2.6% YoY whilst nonrevolving credit (auto loans and student loans) increased 1.4% YoY. These increases are below the inflation rate which means the consumer is avoiding the use of credit for purchases.

Infographic of the Day from Visual Capitalist:

Bar chart showing the best countries for life-work balance in 2025

Statista Graphic of the Day:

Infographic: National Parks Cuts Follow Record-High Visitor Numbers | Statista

You will find more infographics at Statista

The headlines we are reading:

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Authored by Cully Stimson & Hans von Spakovsky via The Epoch Times,

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The law it’s enforcing has existed since 1996, when Congress passed the Illegal Immigration Reform and Immigrant Responsibility Act.

Buried inside t ...

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As "dip buyers" get eviscerated, more dominos fall, and at a tipping point, the herd realizes the tide has reversed and it's time to sell--but alas, it's too late.

Illiquid, Overvalued describes a great many assets that are on the books as "rock-solid investments." Illiquidity means there are few if any buyers for the asset being offered for sale, and this can arise from various conditions.

1. Credit is tight and expensive, limiting the pool of potential buyers to those with cash.

2. Nobody wants the assets because they're grossly overvalued.

3. The pool of buyers with the expertise and financial backing needed to buy the asset is inherently limited.

4. "Animal spirits" have left the room and buyers are "on strike" due to caution / fear of future losses.

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