Closing Recap 

U.S. stocks finished broadly higher, driven by a drop in Treasury yields following a strong auction and ongoing trade optimism, even as the Fed minutes showed a divided committee and more tariffs were announced; gold edged higher, the dollar firmed, and oil was little changed. 

Key Takeaways 

• Stocks Rally on Falling Yields: Major indices gained steadily throughout the day (S&P +0.61%, Nasdaq +0.94%), supported by a notable decline in Treasury yields. 
• Strong 10-Year Auction: A very strong 10-year Treasury note auction showed robust demand, particularly from foreign buyers, pushing yields lower and boosting equities. 
• FOMC Minutes Digested: Minutes from the Fed’s June meeting revealed a divided committee on the path of rate cuts, with some open to an imminent cut, some favoring a hold, and the largest group anticipating cuts later this year. 
• Nvidia Hits $4 Trillion: AI-leader Nvidia (NVDA) became the first public company to reach a $4 trillion market capitalization, highlighting the continued strength in the tech/AI space. 
• More Tariffs Announced: President Trump announced new tariffs (effective Aug 1st) on several additional countries, including a 20% tariff on the Philippines and 30% on Algeria, Iraq, and others. 
• Oil Flat, Gold Gains: Crude oil prices ended near unchanged despite a surprise build in U.S. inventories. Gold posted modest gains as the dollar and yields slipped. 
• Dollar Firms, Bitcoin Hits Record: The U.S. dollar edged slightly higher, while Bitcoin surged to new all-time highs above $111,000. 

Market Overview

U.S. equity markets posted another day of solid gains, with stocks climbing steadily throughout the session as investors cheered a significant drop in Treasury yields and digested a divided Federal Reserve. The positive momentum was underpinned by a very strong 10-year Treasury note auction this afternoon, which saw robust demand and helped pull yields down from recent highs. This provided a tailwind for growth-oriented stocks and the broader market. 

Index	Up/Down	% Change	Last
DJ Industrials	217.54	0.0049	44458
S&P 500	37.74	0.0061	6263
Nasdaq	192.87	0.0094	20611
Russell 2000	23.75	0.0107	2252

Yesterday’s main event was the release of the minutes from the Fed’s June policy meeting. The details confirmed what many suspected: officials are divided on the path forward for interest rates. The minutes showed a “couple of participants” were open to a rate cut at the next meeting, while “some” favored no cuts this year at all. The largest group, however, appeared to align with the market’s expectation of two cuts beginning later this year. This lack of a unified hawkish front was likely viewed favorably by the market. 

On the trade front, President Trump continued his piecemeal tariff announcements, adding a new list of countries including the Philippines and Iraq, with tariffs to take effect on August 1st. In stock-specific news, Nvidia (NVDA) made headlines by becoming the first public company to achieve a $4 trillion market capitalization, underscoring the relentless investor appetite for AI leaders. The market saw broad gains, with Utilities, Technology, and Industrials leading, while Consumer Staples and Energy lagged.

Economic Data

Economic data yesterday was light, focused on wholesale inventories and mortgage applications, with the market largely looking past it. 

• Wholesale Inventories (May – Final): Unrevised at -0.3%. Wholesale Sales -0.3%. Stock/Sales ratio unchanged at 1.30 months. 
• MBA Mortgage Applications (Weekly): Index rose +9.4%. Purchase index +9.4%, Refinance index +9.2%. 30-year mortgage rate fell 2 bps to 6.77%. 
• China CPI Inflation (June – Reported Overnight): Rebounded to +0.1% YoY (from negative), with Core CPI rising to a 14-month high of +0.7% YoY. 

Commodities, Currencies, and Treasuries

Gold prices posted modest gains, with August futures rising $4.10 to settle at $3,321.00 per ounce. The metal found support from falling Treasury yields and a slightly weaker U.S. dollar. Crude oil prices finished near flat, with WTI up just $0.05 at $68.38/bbl. Prices were weighed down by a bearish weekly EIA inventory report, which showed a surprise crude stock build of 7.1 million barrels, but this was offset by broader market optimism and ongoing geopolitical tensions. 

Asset	Up/Down	Unit / % Change	Last
WTI Crude	0.05	USD/bbl	68.38
Brent	0.04	USD/bbl	70.19
Gold	4.1	USD/oz	3321
EUR/USD	-0.002	USD	1.1704
USD/JPY	-0.2	JPY	146.35
10-Year Note	-0.077	%	0.0434

The U.S. dollar index was up slightly, finding support against the Japanese Yen amid ongoing trade concerns. Treasury yields fell for the first time in over a week, with the 10-year yield dropping about 7.7 basis points to 4.34%. The decline was aided by President Trump’s continued public pressure on the Fed to cut rates and a very strong 10-year note auction that showed excellent demand. Bitcoin surged to new all-time highs above $111,750.

Looking Ahead 

The market will continue to digest the FOMC minutes and position ahead of key inflation data releases later in the week. The Treasury’s 30-year bond auction tomorrow will be another important test of investor demand. While the market has shown impressive resilience, the piecemeal announcement of new tariffs by the White House remains a potential source of volatility. Q2 earnings season will also be a key focus, with Delta Air Lines kicking things off tomorrow.