๐ Markets Cool as Tariff Tensions Rise and Traders Shift Defensive
๐ Market Snapshot โ July 12, 2025
Markets took a breather today, with major indices pulling back slightly as tariff concerns and a surprise U.S. Treasury surplus shifted sentiment toward caution.
๐ Index Moves
S&P 500: โ 0.35%
Nasdaq: โ 0.20%
Dow Jones: โ 0.60%
10-Year Yield: Up on inflation/trade risks
USD: Gained on safe-haven flows
๐ Key Drivers
Tariff Tensions: Trumpโs proposed 35% tariffs on Canada spark fears of a broader trade war.
Treasury Surplus: June posted an unexpected surplus, driven by higher tariff receipts.
Rotation Alert: Investors moved into energy, utilities, and staples while trimming riskier positions.
Tech Steady: AI megacaps like Nvidia held ground despite the pullback.
๐ง Fresh Check Takeaway
Markets arenโt panicking โ but they are playing defense. With policy uncertainty brewing and earnings season ahead, traders are locking in gains and rotating to safer ground.
๐ก Quick Tip
Consider rebalancing into low-volatility or dividend-paying sectors while keeping some exposure to AI-driven tech โ it's about protection with potential.