Introduction to July’s Market Performance
Wall Street experienced a moderate July, with the SPDR S&P 500 ETF Trust (SPY) adding about 2.2%, the SPDR Dow Jones Industrial Average ETF Trust (DIA) adding about 0.1%, and the Nasdaq-100-heavy ETF Invesco QQQ Trust, Series 1 (QQQ) adding about 2.4% over the past month. This performance was influenced by significant earnings reports from major companies.
Earnings Reports Impact
There were notable earnings from Microsoft and Meta in July. Amazon beat its Q2 earnings and revenues expectations but faced a drop in shares due to weak Q3 guidance. In contrast, Apple saw an increase in its shares following the release of its earnings report. These mixed results contributed to the overall moderate performance of Wall Street in July.
U.S. Economy Giving Mixed Signals
The U.S. economy rebounded strongly in the second quarter of 2025, with a gross domestic product (GDP) growth rate of 3%, exceeding the forecasted 2.6% growth. However, the July jobs report revealed a softer labor market than expected, with nonfarm payrolls rising by just 73,000, far below the anticipated 100,000 gain. Previous months also saw downward revisions in job growth, indicating a more prolonged labor market slowdown.
Euro Zone Growth Exceeds Expectations
In contrast to the U.S., the Eurozone displayed resilience in economic growth, despite global trade uncertainties. The GDP in the Eurozone countries using the euro rose by 0.1% quarter on quarter, beating forecasts. Strong performances from Spain, France, and Ireland offset economic contractions in Germany and Italy, lessening the need for additional interest rate cuts by the European Central Bank (ECB).
Sector Performances
Ethereum’s Surge
Ethereum (ETH) experienced a significant surge in July, gaining over 35% as President Donald Trump signed the GENIUS Act into law. This, combined with BlackRock’s filing to add staking to its ETHA ether exchange-traded fund (ETF), boosted sentiment for the cryptocurrency. Ethereum continues to lead as a DeFi platform, with growing interest in staking, tokenization, and institutional adoption fueling bullish price predictions.
Shipping and Chip Stocks
The Breakwave Dry Bulk Shipping ETF (BDRY) saw a notable increase of 25.8% as tensions on key trade routes pushed up freight rates. Chip stocks, particularly NVIDIA and AMD, performed well due to strong demand for artificial intelligence (AI) and high-performance computing. The STKd 100% NVDA & 100% AMD ETF (LAYS) was up 33.2%, with AMD benefiting from robust Data Center and Client revenues and NVIDIA seeing growth from AI and accelerated computing.
Marijuana Stocks
Marijuana stocks, such as the AdvisorShares Pure US Cannabis ETF (MSOS), rose 27.3% in July. This increase was partly due to indications that President Trump might support rescheduling cannabis, which could benefit veterans, scientific research, and legal marijuana dispensaries by removing tax burdens.
Conclusion
July’s financial landscape was marked by mixed signals from the U.S. economy, resilient growth in the Eurozone, and significant performances in various sectors such as Ethereum, shipping, chip stocks, and marijuana. As the market continues to evolve, investors are closely watching these trends and their potential impacts on future investments. The diverse performances across different sectors highlight the complexity and opportunities present in the current financial market.
