ADDX GO Market Morning Wrap - 1st Aug

Stock Market  

On Thursday Eastern Time, despite significant gains by tech giants Microsoft and Meta, tariff concerns pressured the market, leading to a collective decline in the three major indices.  

(Three major indices minute chart, source: TradingView)  

 

At close, the Dow Jones Industrial Average fell 0.74% to 44,130.98 points, the S&P 500 dropped 0.37% to 6,339.39 points, and the Nasdaq declined 0.03% to 21,122.45 points. Both the S&P 500 and Nasdaq hit intraday record highs before pulling back.  

 

Tech stocks showed mixed results: Meta surged over 11%, Microsoft rose nearly 4% (closing market cap shy of $4 trillion), while Arm fell over 13%, Tesla dropped over 3%, and Google and Broadcom each declined over 2%.

 

Semiconductor equipment, materials, and weight-loss drug stocks led losses, with Novo Nordisk down nearly 6%, KLA down nearly 5%, ASML down over 3%, and Eli Lilly and Pfizer each down over 2%. Design software giant Figma rose 250% on its debut day.  

 

Post-Fed policy meeting this week, investors reassessed monetary policy paths, heightening market unease, with many questioning a September rate cut.

 

Additionally, the White House’s plan to impose higher tariffs on major trading partners including India and Brazil on Friday further dampened sentiment.  

 

Trump announced Thursday that the U.S.-Mexico tariff agreement will be extended by 90 days.  

 

Nine of the S&P 500’s 11 sectors closed lower, with Dow components UnitedHealth and Merck falling 6% and 4%, respectively, leading blue-chip declines.  

 

“Despite strong earnings, capital expenditure, and buyback activity, the market’s reaction is increasingly hard to explain,” said Joseph Cusick, senior VP and portfolio manager at Calamos Investments. “Yet, the downside has been relatively limited.”  

Global Hotspots  

White House: Trump Signs Order Raising Canada Tariff to 35%  

 

On July 31 local time, the White House announced that President Trump signed an executive order raising tariffs on Canada from 25% to 35%, effective August 1.

 

The White House stated Trump deemed it necessary to adjust “reciprocal tariffs” for certain countries. The order specifies tariffs for listed nations, with a uniform 10% tariff for others.  

 

Monkeypox Outbreak and Variants Spread Across African Countries  

 

On July 31 local time, the WHO Africa office reported a monkeypox outbreak across multiple African countries, with variant strains detected. The IIb variant was found in Gambia patients, later in Mozambique cases.

 

Over the past six weeks, 21 African countries reported ongoing outbreaks, with West Africa seeing IIb variants, Central Africa seeing Ia and Ib variants, and East Africa seeing Ib variants.  

 

Orange Juice Plummets, Coffee Soars: Trump Tariffs Shake Ag Market  

 

Reports indicate that on Wednesday (July 30) local time, the White House stated President Trump signed an order imposing a 40% tariff on Brazil, totaling 50%. Excluded are some wood pulp, oil products, fertilizers, energy products, pig iron, and precious metals, notably including Brazilian orange juice.

This is roiling U.S. agricultural futures, with NY orange juice futures hitting a limit down and coffee futures on the tariff list rising 3.5% intraday Thursday (July 31).  

 

Russia Claims Control of Donetsk Key Town  

 

The Russian Defense Ministry reported on July 31 that its forces have seized the key Donetsk town of Chasiv Yar. Military-political chief Arnautov said this breakthrough in Ukraine’s defenses supports Russia’s next moves.  

 

Dalio Sells Last Bridgewater Stake, Exits Board  

 

Bridgewater Associates founder Ray Dalio sold his remaining stake and stepped down from the board. Insiders say Bridgewater repurchased the shares, with Brunei’s Investment Agency (a sovereign wealth fund) acquiring nearly 20% of the firm.  

 

Scotland Approves World’s Largest Offshore Wind Farm  

 

On Thursday local time, the Scottish government approved SSE’s Berwick Bank project, the world’s largest offshore wind farm, located 23 miles off Scotland’s east coast. With a 4.1 GW capacity, it will power 6 million homes, following nearly a decade of planning.  

 

Trump: U.S.-Mexico Tariff Deal Extended 90 Days  

 

President Trump posted on Truth Social Thursday, after a call with Mexico’s president, that the U.S.-Mexico tariff deal’s complexity differs from others. They agreed to a 90-day extension, with Mexico continuing 25% fentanyl, 25% auto, and 50% steel/aluminum/copper tariffs, while removing some non-tariff barriers.

 

The U.S. will negotiate over 90 days, aiming for a trade deal, and cooperate on border security, drugs, and illegal immigration.  

Company News  

Apple: Q3 Net Profit $23.43B, Up 9%  

 

Apple reported Q3 revenue of $94.04 billion, up 9.6% (expected $89.3 billion), with iPhone revenue at $44.58 billion, up 13% (expected $40.06 billion). Q3 net profit was $23.43 billion, up 9%, with EPS at $1.57 (vs. $1.40 last year, expected $1.43). The board declared a $0.26/share dividend.  

 

Amazon: Q2 Net Profit $18.16B, Up 34.7%  

 

Amazon reported Q2 revenue of $167.7 billion, up 13% (expected $162.15 billion), operating profit at $19.17 billion, up 31% (expected $17 billion), and net profit at $18.16 billion, up 34.7%, with EPS at $1.68 (vs. $1.59 prior quarter, expected $1.33).

 

Q3 sales guidance is $174-179.5 billion (expected $173.24 billion), operating profit $15.5-20.5 billion (expected $19.42 billion).  

 

Salesforce, ServiceNow in Talks to Invest $750M Each in Genesys  

 

Insiders reveal Salesforce and ServiceNow are negotiating $750 million investments each in Genesys Cloud Services Inc., valuing it at ~$15 billion. It’s rare for software rivals to co-back a company.  

Forex & Commodities  

WTI crude futures fell 1.06% to $69.26/barrel. Brent crude futures dropped 0.97% to $72.53/barrel.  

 

COMEX gold futures declined 0.31% to $3,342.3/oz. COMEX silver futures fell 2.51% to $36.79/oz.  

 

At New York close, the dollar index dipped 0.02% to 100.04, with most non-U.S. currencies up.  

Key Events  

World Gold Council: Q2 Global Gold Demand Up 3%  

 

The World Gold Council’s Q2 2025 “Global Gold Demand Trends” report on July 31 showed total demand (including OTC) at 1,249 tons, up 3%, driven by strong investment demand.

 

Jewelry demand fell by volume but rose in value. Central banks added 166 tons, a slower pace amid ongoing economic and geopolitical uncertainty, keeping purchases notably high.  

Cryptocurrency  

Major digital assets were lower Thursday.  

 

The CoinDesk Market Index, tracking dozens of assets including Bitcoin, rose 0.9% in 24 hours.  

 

Bitcoin eased 0.1% to $116,795, with 24-hour volume down 5% to $65.15 billion.  

 

Ethereum (ETH-USD), the second-largest by market cap, dipped 0.8% to $3,735.  

 

XRP (XRP-USD) lost 1.6%, BNB (BNB-USD) gained 1.2%, Solana (SOL-USD) fell 0.2%. Dogecoin (DOGE-USD) shed 1.7%, Cardano (ADA-USD) dropped 1.2%.  

 

The crypto industry’s total market value rose 0.4% to $3.83 trillion, with volume down 5.7% to $158.19 billion.  

Key Events  

SEC Launches ‘Crypto Project’ to Move Finance On-Chain  

 

The SEC on Thursday introduced a “crypto project” to modernize securities rules for crypto-based trading. Chairman Paul Atkins, at the “U.S. Leads Digital Finance Revolution” conference Thursday afternoon, said, “To fulfill President Trump’s vision of making the U.S. the global crypto hub, the SEC must weigh the pros and cons of shifting markets from off-chain to on-chain.”