The S&P 500 spent the week within a narrow range, as investors continued to weigh the implications of the weak July employment report. The index gained 0.8% today, with Apple shares driving much of the movement. The tech giant’s near-6% pop was largely attributed to its plans to sidestep new tariffs on imports from India.
However, despite this boost, Apple stock is still lagging the Nasdaq-100 by 25 percentage points so far this year. The market’s skepticism towards the company’s response to the AI boom is evident.
Earnings reports have been mixed, with some stocks performing better than expected but others struggling due to disappointing outlooks. AMD, Walt Disney, and Emerson Electric all saw declines today, while McDonald’s shares rose 4% on solid results.
Consumers continue to be a concern, with signals indicating stagnant consumer traffic. However, the performance of Disney’s domestic parks and big-box retailer stocks suggests some resilience in the market.
The 10-year Treasury yield remains just above 4.2%, a level it has spent little time below over the past year. Expectations of a September rate cut are gaining traction, which may firm up sentiment towards this group.
The recent surge in the prediction-market odds of former Fed governor Kevin Warsh being nominated as the next Fed chair appears to have been a brief blip. It’s unclear whether the Treasury market will continue to react to these developments.
Source: https://www.cnbc.com/2025/08/06/santolis-market-wrap-up-churn-marked-by-apple-fueling-sp-500-rally.html