ADDX GO Market Morning Wrap - 2nd July

Stock Market  

On Tuesday Eastern Time, the major U.S. indices showed divergent performance as investors pulled out of tech stocks, dragging the Nasdaq down over 0.8%, with the S&P 500 also ending slightly lower, while the Dow rose 0.91%.  

At close, the Dow Jones Industrial Average rose 0.91% to 44,494.94 points; the S&P 500 fell 0.11% to 6,198.01 points; and the Nasdaq dropped 0.82% to 20,202.89 points.  

 

Both the S&P 500 and Nasdaq concluded the first half of the year at record highs. On the first trading day of the second half, traders sold off major tech stocks like NVIDIA and Microsoft, shifting toward healthcare. Amgen and UnitedHealth gained over 4%, Merck rose more than 3%, and Johnson & Johnson increased by about 2%, boosting the Dow’s overall gain.  

 

Additionally, optimism around rising buybacks and dividends lifted U.S. bank stocks, with the KBW Bank Index up 1.5% Tuesday, hitting its highest level since February 2022, just under 4% from its all-time high set that year.  

 

“Over the past two months, the market has been in a classic ‘rising risk appetite’ mode, favoring stocks with strong structural growth drivers like AI and tech,” said Anthony Saglimbene, chief market strategist at Ameriprise. “But I think this trade has run out of steam.”  

 

Tesla’s stock fell over 5% after CEO Elon Musk clashed again with President Trump over the tax expenditure bill.  

 

Trump stated Tuesday that the “Department of Government Efficiency” (DOGE) should review government contracts and subsidies for Musk’s companies, even suggesting he might consider deporting Musk.  

 

With Trump’s tariff grace period ending July 9, major trade partners like Japan and the EU are negotiating with the U.S.  

 

Trump said he is not considering extending the July 9 deadline for trade talks with other nations and expressed skepticism about reaching an agreement with Japan.

Global Hotspots  

U.S. Senate Passes “Big and Beautiful” Bill  

 

On July 1 local time, the U.S. Senate passed a comprehensive tax cut and spending bill, sending it to the House. The Senate voted 51-50 that morning to approve President Trump’s proposal.  

 

During the session, senators voted on dozens of proposed amendments. Republican Vice President Vance, also Senate President, cast the tie-breaking vote in a 50-50 split, passing the amendment 51-50.  

 

Trump Rules Out Extending Tariff Negotiation Deadline

  

On July 1 local time, President Trump, aboard Air Force One, said he is not considering extending the July 9 deadline for trade negotiations with other nations and doubted an agreement with Japan is possible.  

 

Trump: Israel Agrees to Conditions for Gaza Ceasefire  

 

On July 1 local time, Trump posted on his social platform Truth Social that U.S. representatives held a “long and productive” meeting with Israel on the Gaza issue, with Israel agreeing to conditions for a 60-day ceasefire.  

 

Will Musk Be Deported? Trump Responds: “I’ll Think About It”  

 

On July 1 morning local time, as Trump departed for Florida to inaugurate the new “Alligator Devil Island” immigrant detention facility, he addressed his feud with entrepreneur and former DOGE head Elon Musk in two media interviews.  

 

At the White House, when asked if he would deport Musk, Trump said, “I’ll think about it,” suggesting DOGE—a “monster that might bite its master”—could target Musk, while noting Musk’s heavy reliance on government subsidies.

Company News  

Major Wall Street Banks to Raise Dividends  

 

Following the Fed’s annual stress tests, several Wall Street banks plan to boost dividends.

 

JPMorgan Chase will raise its quarterly dividend from $1.40 to $1.50 per share and approved a new $50 billion stock buyback. Morgan Stanley plans to increase its dividend from $0.925 to $1.00 per share, while Wells Fargo intends to lift its dividend by 12.5% to $0.45 per share.  

 

Ford Reports 14.2% U.S. Sales Increase in Q2

 

Ford reported Q2 U.S. sales of 612,095 vehicles, up 14.2% year-over-year, with an estimated market share of 14.3%, a 1.8-point rise from Q1.  

 

AstraZeneca May Exit London Stock Exchange  

 

AstraZeneca CEO Pascal Soriot reportedly discussed privately moving the company from the UK, expressing interest in listing its stock in the U.S. and possibly relocating its registration. Following the news, AstraZeneca’s U.S. ADR rose over 2%, signaling investor support.

Forex & Commodities  

Oil prices rose on July 1.  

 

At close, the August delivery light crude oil futures on the NYMEX rose 34 cents to $65.45 per barrel, up 0.52%; the September Brent crude futures on the ICE rose 37 cents to $67.11 per barrel, up 0.55%.  

 

COMEX gold futures rose 1.28% to $3,349.9 per ounce; COMEX silver futures gained 0.20% to $36.245 per ounce.  

 

On July 1 local time, the U.S. dollar index fell 0.13% to 96.65 at New York close, with most non-U.S. currencies gaining.

Key Events  

Dollar Down Over 10% in Half-Year, Central Bankers Say Dominance Intact Short-Term  

 

On Tuesday, July 1 local time, at the annual central bank conference in Sintra, Portugal, several governors said the dollar’s status as the preferred global reserve currency faces no major short-term challenge.

 

Despite Trump’s unpredictable economic, trade, and security policies raising doubts, the dollar depreciated over 10% this half-year—the largest since 1973. Yet, it still accounts for 58% of global forex reserves, remaining central to the system.  

 

Powell Admits: Fed Would Have Cut Rates Without Trump Tariffs  

 

On Tuesday, July 1 local time, Fed Chair Powell said the Fed would have begun rate cuts in 2025 and adopted looser policy now, absent Trump’s tariffs.

Cryptocurrency  

Major digital assets fell late Tuesday.  

 

Bitcoin dropped 1.8% to $105,573, with 24-hour trading volume up 5.2% to $44.96 billion.  

 

Ethereum (ETH-USD), the second-largest by market cap, fell 3.8% to $2,414.  

 

XRP (XRP-USD) lost 5.3%, BNB (BNB-USD) fell 1.9%, and Solana (SOL-USD) declined 7.3%. Dogecoin (DOGE-USD) slumped 5.1%, and Cardano (ADA-USD) dropped 7.1%.  

 

The total crypto market value fell 2.5% in 24 hours to $3.25 trillion, with trading volume down 5.1% to $98.2 billion.

Key Events  

Coinbase: Bitcoin Wallets Holding Over $1M Surge  

 

Coinbase reports a bullish outlook for crypto in the second half of 2025, driven by economic optimism, corporate adoption, and regulatory progress.

 

A key trend is the sharp rise in Bitcoin (BTC) wallets holding over $1 million, with numbers significantly increasing from early 2024 to May 2025.  

 

Crypto Market a Tale of Two Realities: Bitcoin Soars, Altcoins Fade  

 

On the surface, 2025 seems a banner year for crypto: Bitcoin hits new highs, a pro-crypto President Trump takes office with his family engaging in the space, and a highly anticipated legislative bill nears Congress approval.  

 

Yet, a deeper look reveals a stark contrast—altcoins, once hailed as Bitcoin challengers, are plummeting, with over $300 billion in market cap evaporated to date.