Wall Street’s upward march persisted despite pockets of volatility and macroeconomic crosscurrents. With record equity closes, firmer retail sales, and large cap technology squarely in focus, investors enter the heart of earnings season bracing for fresh signals on growth, inflation, and central bank direction in the summer ahead. Yes, indeed in a week marked by record equity highs, resilient consumer data, and continued trade policy tensions, U.S. markets extended their rally, though with flashes of volatility in tech and electric vehicles.
Index Performance
The S&P 500 set a new record, rising 1.5% for the week and closing at 6,388.64, achieving the rare distinction of notching a “perfect week” of consecutive record highs from Monday to Friday.
The Nasdaq Composite similarly advanced, gaining 1% to a new record of 21,108.32, buoyed by optimism surrounding large cap tech earnings and AI momentum. The Dow Jones Industrial Average outperformed its recent trend, climbing 1.3% to 44,901.92 as investors rotated into cyclical and value names following profit-taking in previous weeks.
Meanwhile, the Russell 2000 continued its July resurgence, up nearly 9% month-to-date, as small-cap stocks found favor on hopes for upcoming rate cuts and improving economic sentiment.
Macroeconomic Reports
Economic data remained mixed but broadly constructive:
Inflation: Consumer Price Index data remained sticky, with higher readings in categories most exposed to tariffs. Producer price inflation, however, showed a more modest trend, easing concerns over a re-acceleration in input costs.
Retail Sales: Retail sales surprised to the upside, once again demonstrating the durability of the U.S. consumer.
Labor Market: Weekly jobless claims declined for the fifth consecutive week, signaling ongoing strength in employment and providing a stable backdrop for spending and investment.
Corporate News Highlights
NVIDIA (NVDA, $173.50, +.63% over the last 5-days): Nvidia shares rebounded, touching new highs on Friday amid anticipation of upcoming quarterly results. Although the stock lost 3.3% earlier in the week as early July momentum faded, investor enthusiasm for its AI leadership and impending earnings kept sentiment strong. Analysts affirmed a consensus “Strong Buy” outlook for the stock, with robust revenue and earnings growth projections heading into its August report.
Tesla (TSLA, $316.06, -4.12% over the last 5-days): Tesla endured a notably turbulent week, with shares plunging as much as 10% Thursday following disappointing quarterly sales and CEO Elon Musk’s warning of “a few rough quarters ahead.” Tariff headwinds and dwindling EV incentives in the U.S. compounded the pressure. Tesla reported its most significant sales decline in over a decade, reducing future delivery projections and pointing to broader challenges for the EV sector.
Meta Platforms (META, $712.68, +1.19% over the last 5-days): Meta remained in the spotlight with investors’ eyes on its forthcoming earnings next week. The stock traded largely in line with peers, amid ongoing optimism about large-scale data center investments and AI growth.
McDonald’s (MCD, $298.47, +.47% over the last 5-days): No major news; stock followed sector trends without notable headlines this week.
Rio Tinto Group (RIO, $63.10, +4.23% over the last 5-days): No significant announcements impacting U.S. trading; the stock tracked broader commodity movements.
Palantir Technologies (PLTR, $158.80, +3.44% over the last 5-days): The company remained quiet on the news front, but shares benefitted tangentially from interest in AI and government tech contracts.
Mergers, Acquisitions, and IPOs
The S&P 500 saw only modest activity on the M&A front, but market headlines were made as Paramount Global’s merger with Skydance Media received regulatory approval, inking an $8.4 billion deal. This move, although outside the S&P 500, underscores the ongoing media consolidation trend.
IPO activity on the NYSE and Nasdaq remained muted, with no high-profile offerings announced or priced this week as summer seasonality and valuation apprehension persisted.
Tariffs and Trade Policy
Trade policy remained a driving force across markets:
The White House stood firm on its August 1 tariff deadline, confirming that affected nations will face new duties unless progress is demonstrated. U.S. officials repeated warnings of possible 15%-30% tariffs on European goods, adding to ongoing friction over Chinese tariffs that weighed on EV and tech names.
Reports indicated U.S. consumers have not yet significantly pulled back on spending due to tariffs, though inflation pressures in exposed categories are noticeable.
Yield Curve, Interest Rates, and Fed Policy
Treasury yields ended the week mixed. The short end gained, while long-dated yields retreated slightly after early week spikes tied to speculation about Fed independence and potential leadership changes.
The probability of a July rate cut is low (5%), but markets are pricing nearly a 60% likelihood of a cut in September, reflecting hope for central bank support as inflation starts to wane.
No FOMC meeting was held this week; the next decision is expected in August, with policymakers closely monitoring tariff fallout and evolving inflation data.
Commodities & Cryptocurrency
Gold and Silver: Gold dropped 1.86% over the last 5-days closing at $3,338.50/oz. Silver closed at $38.325/oz. down 1.98% over the last 5-days.
Crude Oil prices fell during the week, retracing on fading geopolitical tensions and stable global output closing at $65.07/bbl down 3.17% over the last 5-days..
Bitcoin and Crypto Stocks: Bitcoin
remained volatile, trading higher for the week in tandem with tech and risk assets and closed at $115,450 after reaching $120,330. Crypto-related stocks advanced modestly, mirroring the rebound in major U.S. indices.
Meme Stock Frenzy: Krispy Kreme and Other Big Movers
This week, the equity markets weren’t just marked by record indexes—they were animated by a dramatic meme-stock resurgence that echoed the trading frenzies of 2021. Leading this cavalcade was Krispy Kreme (DNUT), which experienced wild swings as retail traders, galvanized by social media, poured into heavily shorted stocks. On Wednesday, Krispy Kreme surged as much as 34% premarket and ultimately closed up 4.5% on the day**, while intraweek volatility saw its shares oscillating by nearly 39% intraday before settling back as the rally faded.
Analysts attribute DNUT’s sharp moves—up more than 31% over the past two weeks—to a potent mix of high short interest, meme-fueled buying, and spillover optimism from tech and crypto sectors. Despite analyst price target downgrades, the momentum among retail traders overpowered typical fundamentals during the chase for quick profits. On trading forums such as Reddit’s WallStreetBets, Krispy Kreme became one of the week’s most-cited tickers, joining other so-called “DORK” names—Opendoor Technologies (OPEN), Kohl’s (KSS), GoPro (GPRO)—that took turns soaring as part of the week’s speculative wave.
Analysts note that this frenzy was largely driven by retail investors emboldened by recent market highs and robust risk appetite, as evidenced by speculative trading indicators reaching levels not seen since 2021. While these bursts of volatility—often untethered from company fundamentals—brought big rewards for some, warnings abounded about the sustainability of such rallies and the risks of sharp reversals once social buying power abates.
The meme mania, while providing spark and headlines, ultimately settled down by week’s end as reality set in and broader markets resumed their methodical upward march. Still, the sharp movements in Krispy Kreme and other “meme” tickers were a significant subplot for Wall Street as July closed out.
