Stock Market Daily Update: Shares Retreat Slightly from Previous Record Levels
In the world of economics, the ongoing relationship between Federal Reserve Chair Jerome Powell and former President Trump is shaping up to be a significant narrative. The current sentiment towards Powell is mixed and somewhat contentious, with political figures like Trump putting pressure on the Fed chair to lower interest rates [1][3].
Despite this pressure, Powell and other Fed officials are expected to keep the key interest rate steady at about 4.3% in the near term. This cautious monetary policy is a clear indication that Powell is aiming for a balance between inflation and economic growth [1][3]. The independence of the Fed is being tested, but it remains a key institutional principle, even as debates and public disagreements occur.
In July 2025, economic indicators paint a complex picture. While the specifics of inflation are not detailed, Powell’s indication to maintain rates suggests that inflation remains a consideration in policy decisions. The Index of Consumer Sentiment inched up to 61.8 in July, its highest level in five months [1]. However, data on consumer sentiment, housing starts, and exact market index performance for July 2025 are not provided in the available context.
In the equity market, the Nasdaq Composite eked out a 10-point gain to 20,895, while the S&P 500 was down less than a point to 6,296 [1]. Notably, 3M (MMM) beat expectations, raised guidance, and gapped down at the opening bell. This downturn was followed by the company losing its position as one of the top 30 stocks on the Dow Jones Industrial Average, sliding 3.6% [1].
In the cryptocurrency market, Bitcoin traded at a 24-hour high of $120,689 and hit a new all-time high above $123,000. The total value of the cryptocurrency market exceeded $4 trillion, with Coinbase Global (COIN) hitting a new all-time high and closing up 2.2% [1].
However, not all tech companies fared well. Netflix ended the day down 5.1%, despite beating expectations and raising its guidance [1].
In the realm of housing, housing starts increased at a better-than-forecast month-over-month pace of 4.6% in June to an annual rate of 1.321 million [2]. Building permits ticked up 0.2% month over month but were down 4.4% year over year [2].
Meanwhile, in the corporate world, Nvidia (NVDA) became the first publicly traded company to cross the $4 trillion market capitalization barrier this week [2].
In a related development, COIN is a top holding in some of the best bitcoin ETFs to buy [2].
As the economic landscape continues to evolve, the delicate balance between political pressures and monetary policy autonomy remains a critical factor. The Fed's operational independence is being tested, but it remains a key institutional principle. The Fed's decisions and their impact on the economy will continue to be closely watched in the coming months.
[1] Source: Reuters, Bloomberg, CNBC [2] Source: MarketWatch, Forbes, CoinDesk
- As the Fed maintains a steady interest rate in 2025, investors might find opportunities in the crypto market, as Bitcoin trades at a new high and surpasses a market cap of $4 trillion.
- In contrast, the stock-market performance fluctuates, with tech companies like Netflix experiencing a decline despite beating expectations, while Nvidia becomes the first company to reach a $4 trillion market cap.
- Amidst these economic changes, the finance world sees shifts in investing strategies, with Coinbase Global (COIN) becoming a top holding in bitcoin ETFs, reflecting the growing interest in cryptocurrencies.
