U.S. stock markets diverge in hesitant start to week

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U.S. stock markets diverge in hesitant start to week

Lola Evans
23 Jul 2025, 01:47 GMT+

NEW YORK, New York - U.S. equity markets delivered a mixed performance to start the week, with the Dow Jones Industrial Average climbing, and the Standard and Poor's 500 edging up to a new record high, while technology stocks weighed on the Nasdaq Composite.

U.S. President Donald Trump announced a new trade deal with the Philippines, implementing a 19 percent tarriff on imported Philippines goods.

"This market's pretty stalled out," Jay Hatfield, CEO at Infrastructure Capital Advisors, told CNBC Monday. "We are going to need to have very strong tech earnings to propel the market much higher," he said.

U.S. Market Performance

The Dow Jones Industrial Average (^DJI) led gains among major U.S. benchmarks, rising 179.37 points or 0.40 percent to close at 44,502.44, supported by strength in industrial and financial stocks.

The broader Standard and Poor's 500 (^GSPC) inched up 4.02 points or 0.06 percent to finish at 6,309.62, marking another record closing high despite mixed sector performance.

Technology stocks underperformed, dragging the Nasdaq Composite (^IXIC) down 81.49 points or 0.39 percent to 20,892.69 as investors rotated out of some mega-cap growth names.

Market Drivers

Analysts noted the divergence between value and growth stocks reflected shifting investor sentiment ahead of key economic data later this week, including inflation readings and Federal Reserve commentary.

*Trading volumes: S&P 500 - 2.961 billion shares; Dow Jones - 481.207 million shares; Nasdaq - 9.562 billion shares; TSX - 148.267 million shares.

U.S. Dollar Slips Against Euro and Commodity Currencies, Trimmed by Yen and Franc Strength

The U.S. dollar fell on Monday, falling against the euro and commodity-linked currencies and facing resistance from a stronger Japanese yen and Swiss franc.

Euro and Pound Edge Higher

The euro (EUR/USD) rose 0.54 percent to 1.1751, supported by improved risk appetite in European markets. The British pound (GBP/USD) also gained, climbing 0.31 percent to 1.3530 amid steady UK economic data.

Aussie and Kiwi Rally on Risk Sentiment

Commodity currencies advanced, with the Australian dollar (AUD/USD) up 0.45 percent to 0.6553 and the New Zealand dollar (NZD/USD) surging 0.57 percent to 0.6001, as investors favored higher-yielding assets.

Yen and Swiss Franc Outperform

The U.S. dollar (USD/JPY) fell 0.53 percent against the Japanese yen, slipping to 146.58, as traders weighed potential Bank of Japan policy adjustments. The Swiss franc (USD/CHF) also strengthened, pushing the dollar down 0.65 percent to 0.7924 amid safe-haven demand.

Canadian Dollar Benefits from Oil Strength

The US dollar (USD/CAD) declined 0.55 percent to 1.3606, pressured by a stronger Canadian dollar as crude oil prices rose.

Market Outlook

Currency markets remain sensitive to shifting central bank expectations, with focus turning to upcoming US inflation data and Federal Reserve commentary for further direction.

Global Markets Close Mixed on Monday; Asia-Pacific Gains Offset European Declines

UK and Global stock markets delivered a mixed performance on Monday, with gains in the Asia-Pacific region and Canada, offset by declines across major European indices.

Canada

North of the U.S. border, Canada's S&P/TSX Composite Index (^GSPTSE) gained 47.43 points or 0.17 percent to close at 27,364.43, supported by strength in energy and materials shares as commodity prices firmed.

Europe

The FTSE 100 (^FTSE) in London inched higher, closing at 9,023.81, up 10.82 points or 0.12 percent, supported by gains in energy and financial stocks.

However, Germany's DAX (^GDAXI) fell sharply, losing 265.90 points or 1.09 percent to end at 24,041.90, weighed down by weak industrial data. France's CAC 40 (^FCHI) dropped 53.81 points or 0.69 percent to 7,744.41, while the EURO STOXX 50 (^STOXX50E) declined 52.50 points or 0.98 percent to 5,290.48.

The broader Euronext 100 (^N100) slipped 9.06 points or 0.57 percent to 1,573.39, and Belgium's BEL 20 (^BFX) edged down 6.67 points or 0.15 percent to 4,547.41.

Asia and Pacific

In contrast, most Asian markets ended in positive territory. Hong Kong's Hang Seng Index (^HSI) rose 135.89 points or 0.54 percent to 25,130.03, while Singapore's STI Index (^STI) gained 1.13 points or 0.03 percent to 4,208.26.

Australia's S&P/ASX 200 (^AXJO) added 9.00 points or 0.10 percent to 8,677.20, and the All Ordinaries (^AORD) climbed 15.30 points or 0.17 percent to 8,941.50, while New Zealand's NZX 50 (^NZ50) fell 127.77 points or 0.99 percent to 12,833.74.

Japan's Nikkei 225 (^N225) dipped slightly, losing 44.19 points or 0.11 percent to close at 39,774.92, while China's Shanghai Composite (000001.SS) rose 22.07 points or 0.62 percent to 3,581.86.

India's S&P BSE SENSEX (^BSESN) was nearly flat, dipping 13.53 points or 0.02 percent to 82,186.81, while Indonesia's IDX Composite (^JKSE) fell 53.46 points or 0.72 percent to 7,344.74.

South Korea's KOSPI (^KS11) tumbled 40.87 points or 1.27 percent to 3,169.94, and Taiwan's TWSE (^TWII) slumped 352.64 points or 1.51 percent to 22,987.92.

Middle East

In the Middle East, Egypt's EGX 30 (^CASE30) dropped 326.30 points or 0.96 percent to 33,803.30, while Israel's TA-125 (^TA125.TA) slipped 1.26 points or 0.04 percent to 3,116.10.