Mixed Markets: Inflation and Consumers Adjust
Stocks were mixed last week as markets navigated ongoing tariff discussions while investors reacted to upbeat quarterly corporate earnings and a trove of economic updates.
The S&P 500 Index rose 0.59%, while the Nasdaq Composite Index added 1.51%. The Dow Jones Industrial Average decreased 0.07%. The MSCI EAFE Index, which tracks developed overseas stock markets, skidded 0.46%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 7/11/25 = 0)
Economic News
All three major market averages posted modest gains to start the week as investors appeared to shrug off tough talk on trade from the White House over the weekend.3
Stocks mostly fell after news that inflation warmed up a bit last month, albeit in line with economists’ expectations. A narrow, chip-led rally developed after a megacap chipmaker said it received assurances from the White House of its ability to sell products in China, pushing the Nasdaq modestly higher.4
Stocks continued their climb over the next session following news that consumer spending rebounded last month as trade talk slowed. The S&P 500 posted another record close amid several companies beating expectations as they reported quarterly financials.5,6
Markets went slightly lower on Friday despite news that consumer sentiment rose last month. The consumer sentiment report also showed a drop in concerns about tariff-induced inflation.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Splitting the Difference
Two themes developed with fresh economic data released last week: inflation and consumers.
First, June inflation data painted a mixed picture. While consumer prices rose at a 2.7% annual clip last month (faster than May’s 2.4% rate), wholesale inflation was flat. So, while retail prices were a concern, wholesale prices currently suggest a muted effect from tariffs.8,9
The second theme revolved around consumers, who continued to be a source of strength for the economy. Retail sales recovered in June, and while they were still lower than at year-end, consumer sentiment rose to its highest level since February.10
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, July 18, 2025
2 Investing.com, July 18, 2025
3CNBC.com, July 14, 2025
4WSJ.com, July 15, 2025
5CNBC.com, July 16, 2025
6CNBC.com, July 17, 2025
7CNBC.com, July 18, 2025
8WSJ.com, July 15, 2025
9MarketWatch.com, July 16, 2025
10MarketWatch.com, July 17, 2025
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