Stocks were mixed last week, battling through tariff talk while responding to upbeat quarterly corporate reports and a trove of updates on the economy.

The Standard & Poor’s 500 Index rose 0.59 percent, while the Nasdaq Composite Index added 1.51 percent. The Dow Jones Industrial Average decreased 0.07 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, skidded 0.46 percent.^1,2

Economic News

All three major market averages posted modest gains to start the week as investors appeared to shrug off tough talk on trade from the White House over the weekend.³

Stocks mostly fell after news that inflation warmed up a bit last month, albeit in line with economists’ expectations. A narrow, chip-led rally developed after a megacap chipmaker said it received assurances from the White House of its ability to sell products in China, pushing the Nasdaq modestly higher.⁴

Stocks continued their climb over the next session following news that consumer spending rebounded last month as trade talk slowed. The S&P 500 posted another record close amid several companies beating expectations as they reported quarterly financials.^5,6

Markets went slightly lower on Friday despite news that consumer sentiment rose last month. The consumer sentiment report also showed a drop in concerns about tariff-induced inflation.⁷

Splitting the Difference

Two themes developed with fresh economic data released last week: inflation and consumers.

First, June inflation data painted a mixed picture. While consumer prices rose at a 2.7 percent annual clip last month (faster than May’s 2.4 percent rate), wholesale inflation was flat. So while retail prices were a concern, wholesale prices currently suggest a muted effect from tariffs.^8,9

The second theme revolved around consumers, who continued to be a source of strength for the economy. Retail sales recovered in June, and while they were still lower than at year-end, consumer sentiment rose to its highest level since February.¹⁰

This Week: Key Economic Data

Monday: Leading Economic Indicators.

Tuesday: Fed Chair Powell banking conference speech. Fed Official Michelle Bowman speaks.

Wednesday: Existing Home Sales. Treasury Buyback.

Thursday: Jobless Claims (weekly). Services & Manufacturing PMI. New Home Sales. Fed Balance Sheet.

Friday: Durable Goods.

^{Source: Investors Business Daily – Econoday economic calendar; July 18, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Verizon Communications Inc. (VZ)

Tuesday: The Coca-Cola Company (KO), Philip Morris International Inc. (PM), RTX Corporation (RTX), Texas Instruments Incorporated (TXN), Intuitive Surgical, Inc. (ISRG), Danaher Corporation (DHR), Lockheed Martin Corporation (LMT)

Wednesday: Alphabet Inc. (GOOG/GOOGL), Tesla, Inc. (TSLA), International Business Machines Corporation (IBM), T-Mobile US, Inc. (TMUS), ServiceNow, Inc. (NOW), AT&T Inc. (T), Thermo Fisher Scientific Inc. (TMO), NextEra Energy, Inc. (NEE), Boston Scientific Corporation (BSX), GE Vernova Inc. (GEV), Amphenol Corporation (APH), CME Group Inc. (CME)

Thursday: Honeywell International Inc. (HON), Union Pacific Corporation (UNP), Blackstone Inc. (BX), Intel Corporation (INTC)

^{Source: Zacks, July 18, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“All of us have to learn how to invent our lives, make them up, imagine them. We need to be taught these skills; we need guides to show us how. If we don’t, our lives get made up for us by other people.”

– Ursula K. Le Guin

Essential Tax Reminders for People Selling a Home

If you’re selling your home, you may be able to exclude all or part of any gain from the sale when filing your tax return. To see if you are eligible for this benefit, you have to consider:

• The home’s ownership and use: Over five years, ending on the date of the sale, the homeowner must have owned the house and lived in it as their main home for at least two years.
• Any gains: Taxpayers who sell their primary home and gain from the sale may be able to exclude up to $250,000 of that gain from their income. The exclusion increases to $500,000 for a married couple, filing jointly.
• Mortgage debt: Generally, if your mortgage debt was forgiven or canceled, such as in the case of a foreclosure, you have to report this forgiven debt as income on your tax return.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹¹

What is Percussive Therapy?

If you’ve ever had a hard workout or gone on a long hike, you know how tight your muscles can get. There are many ways to help alleviate this soreness, from foam rolling to stretching. Percussive therapy is another option to help soothe sore muscles.

Percussive therapy uses a massage gun that rapidly strikes the sore muscle with varying pressure. This therapy aims to increase blood flow to the aching muscles to speed recovery and limit soreness. It is the same idea as deep tissue massages; you glide a percussive massage gun device over sore muscles. Different guns come with various attachments and levels of pressure.

Tip adapted from Greatist¹²

A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid?

Last Week’s Riddle: Seven people stand in a square room measuring 30′ x 30′. Each can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?
Answer: Place the apple atop one person’s head.

Aurora Borealis
Jokulsarlon Glacial Lagoon

Stocks were slightly lower last week, while looking past news of fresh U.S. tariffs on nearly two dozen countries.

The Standard & Poor’s 500 Index fell 0.31 percent, while the Nasdaq Composite Index edged lower by 0.08 percent. The Dow Jones Industrial Average lost 1.02 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 0.43 percent.^1,2

The Return of the Tariffs

Stocks started the week lower after the White House posted letters to 14 countries announcing new tariffs, set to take effect August 1. They included 25 percent tariffs on South Korea and Japan.^3,4

Stocks dropped briefly midweek after the White House announced tariffs on seven additional countries. But as investors digested the news, markets gradually recovered, hoping the administration would dial back its steepest tariff rates again.

Markets also rallied on fresh AI trade enthusiasm and the latest Fed meeting minutes, which showed a majority of Committee members were open to adjusting interest rates later this year.^5,6

Markets opened higher on Thursday as investors shrugged off news of the 50 percent tariff on Brazil imports, announced shortly after Wednesday’s close. Momentum continued, and the S&P 500 and Nasdaq rose to fresh records.⁷

Then, after Thursday’s close, the White House announced the U.S. was raising tariffs on Canadian imports to 35 percent and was preparing some other tariffs. Markets opened lower on Friday and trended sideways during the trading session.⁸

The T Word

While tariffs drove market headlines last week, another “t word” made news: trillion.

More specifically, $4 trillion in market capitalization. The nation’s largest AI chip maker was the first company to breach that market cap level. It crossed the $4 trillion mark intraday on Wednesday, then closed above it for the first time on Thursday’s close.^9,10

So why does it matter when one stock hits such a milestone? For a market-cap weighted index like the S&P 500, a company valued at $4 trillion has an outsized effect on the overall index’s performance. The largest five companies in the S&P 500 comprise about one-third of the benchmark index.^9,10

This Week: Key Economic Data

Tuesday: Consumer Price Index (CPI). Industrial Production. Capacity Utilization. Boston Fed President Susan Collins and Dallas Fed President Lorie Logan speak.

Wednesday: Producer Price Index (PPI). Fed Beige Book.

Thursday: Jobless Claims (weekly). Retail Sales. Import Price Index. Business Inventories. Home Builder Confidence Index.

Friday: Housing Starts. Building Permits. Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar; July 11, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), BlackRock (BLK), Citigroup Inc. (C)

Wednesday: Johnson & Johnson (JNJ), Bank of America Corporation (BAC), Morgan Stanley (MS), The Goldman Sachs Group, Inc. (GS), The Progressive Corporation (PGR), Prologis, Inc. (PLD)

Thursday: Netflix, Inc. (NFLX), GE Aerospace (GE), Abbott Laboratories (ABT), PepsiCo, Inc. (PEP), Marsh & McLennan Companies, Inc. (MMC), Interactive Brokers Group, Inc. (IBKR)

Friday: American Express Company (AXP), The Charles Schwab Corporation (SCHW)

^{Source: Zacks, July 11, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“The trust of the innocent is the liar’s most useful tool.”

– Stephen King

With Shared Custody, Taxes Can Get Complicated

If you have a legal agreement with your child’s other parent regarding custody, you may have questions about claiming the child on your tax return and what credits (if any) you are eligible for.

It might help if you research the Child Tax Credit as well. The parent who claimed the Child Tax Credit for a qualifying child the previous year may have received the advance child tax credit payments the following year.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹¹

Sneak in More Veggies with Mashed Cauliflower

Mashed potatoes are a classic side at any meal, but they can be calorie-dense and don’t provide as much nutritional benefit as other veggies. If you want a tasty and easy way to incorporate more veggies into your meals this year, try this simple mashed cauliflower recipe:

Ingredients

• 1 head of cauliflower
• 1 tbsp olive oil
• 2 garlic cloves (minced)
• 1-2 tsp of finely chopped herbs such as thyme, rosemary, sage, chives, etc.

Instructions

1. Trim the leaves off the cauliflower and cut the florets into smaller pieces. Rinse well.
2. Steam the cauliflower florets in a pot with a steamer insert for 6-8 minutes.
3. While the cauliflower is steaming, heat the olive oil in a small pan over medium heat. Add the minced garlic and cook until fragrant (about 30 seconds).
4. Dump out the water from the pot and add the cauliflower, olive oil, garlic, and chopped herbs.
5. Use a potato masher to mash the cauliflower and combine everything.

Tip adapted from Downshiftology¹²

Seven people stand in a square room measuring 30′ x 30′. Each can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?

Last Week’s Riddle: Alexandra’s mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child’s name?
Answer: Alexandra.

Fennec fox
Yong in, Gyeonggi do, South Korea

Footnotes and Sources

^{1. WSJ.com, July 11, 2025}

^{2. Investing.com, July 11, 2025}

^{3. CNBC.com, July 7, 2025}

^{4. CNBC.com, July 8, 2025}

^{5. WSJ.com, July 9, 2025}

^{6. MarketWatch.com, July 9, 2025}

^{7. CNBC.com, July 10, 2025}

^{8. CNBC.com, July 11, 2025}

^{9. WSJ.com, July 9, 2025}

^{10. MarketWatch.com, July 10, 2025}

^{11. IRS.gov, March 6, 2025}

^{12. Downshiftology.com, March 18, 2025}

Stocks staged a broad-based rally last week on investors’ hopes for a lasting Middle East ceasefire, hitting fresh record highs along the way.

The Standard & Poor’s 500 Index rose 3.44 percent, while the Nasdaq Composite Index added 4.25 percent. The Dow Jones Industrial Average advanced 3.82 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 3.04 percent.^1,2

Stocks Push Higher

Last week opened with a rally powered by news of a tamer-than-expected escalation of tensions in the Middle East. Stocks continued their rise after this week’s ceasefire agreement, although Wall Street appeared concerned about whether the truce would remain in place.^3,4

Sentiment brightened after the White House played down the approaching July 8 tariff deadlines. Solid corporate earnings, a still-strong labor market, and a recovery in artificial intelligence-related stocks provided some underlying strength to the rally.⁵

As the week wrapped up, the S&P 500 hit its first new high since February—it marked the fastest-ever recovery from a 15-percent decline for the broad-market index. The tech-heavy Nasdaq Composite also closed at an all-time high.^6,7

Economic Data Helped, Too

While trade and Middle East updates powered most of the markets’ rise last week, a few economic bits of news also contributed to the week-long rally. For example, consumer sentiment climbed 16 percent in May—its first increase in six months.^8,9

“The improvement was broadbased across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more,” the University of Michigan said in a statement.

This Week: Key Economic Data

Monday: Fed Officials Raphael Bostic and Austan Goolsbee speak.

Tuesday: Fed Chair Jerome Powell speaks. ISM Manufacturing Index. Construction Spending. Job Openings.

Wednesday: Motor Vehicle Sales. ADP Employment Report.

Thursday: U.S. Employment Report. International Trade in Goods & Services. Fed Official Raphael Bostic speaks. Factory Orders. ISM Services Index. 10-Year Treasury Note Announcement. Federal Balance Sheet.

Friday: MARKET HOLIDAY

^{Source: Investors Business Daily – Econoday economic calendar; June 27, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday: Constellation Brands Inc. (STZ)

^{Source: Zacks, June 27, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“There is nothing in a caterpillar that tells you it’s going to be a butterfly.”

– Buckminster Fuller

How to Find Tax Help in Other Languages

The IRS currently translates important and helpful tax information using seven languages, including:

• Spanish
• Chinese (Traditional)
• Chinese (Simplified)
• Korean
• Russian
• Vietnamese
• Haitian Creole

Some multilingual resources include The Taxpayer Bill of Rights, important filing information, e-file resources, forms and publications, and the IRS2Go mobile app.

To access information in these languages, taxpayers can click on the English dropdown tab in the top menu on the IRS.gov home page. The dropdown will list the other languages where taxpayers can view IRS.gov pages. In addition, the IRS offers interpreter services in more than 350 languages.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

What is Pickleball?

Pickleball has taken the world by storm, and for a good reason! The game is easy to play, great exercise, and you can play at many levels.

Pickleball combines tennis, ping pong, and badminton elements to create an addictive and fun sport. To play, you hit a Wiffle ball (a plastic ball with holes) with a paddle on a badminton-sized court. Pickleball has some unique rules, but it offers simple gameplay and is deeply enjoyable overall.

If you want to start playing pickleball, check out your local parks and tennis courts! Increasingly, areas offer open play, rec leagues, and lessons for players of all levels.

Tip adapted from USA Pickleball¹¹

It can be told, played, and cracked, and it can even be practical. What is it?

Last Week’s Riddle: What do the words civic and level have in common?
Answer: They are both palindromes.

Osaka, Japan