To The Moon

Market Overview: Inflation Fears Stall Global Rally

Global markets were mixed on July 15, 2025, as inflation surprises and uneven earnings weighed on sentiment. The Dow Jones Industrial Average $DJIA(.DJI)$  led declines, dropping 436.36 points (-0.9%) to 44,023.29. The S&P 500 $S&P 500(.SPX)$  slipped 24.80 points (-0.4%) to 6,243.76, while the tech-heavy Nasdaq Composite$NASDAQ(.IXIC)$   bucked the trend with a 0.1% gain, thanks to Nvidia-led$NVIDIA Corp(NVDA)$   strength. European equities faltered on rising US inflation data, while Asian markets found support from upbeat Chinese economic numbers.

US: Dow Slumps as Banks Disappoint, Tech Provides a Lifeline

US markets closed mixed. The Dow and S&P 500 were dragged lower by concerns over sticky inflation and lackluster earnings from major banks. The surprise uptick in core inflation to 2.7% in June raised questions about the Fed’s policy direction. In contrast, the Nasdaq edged higher, lifted by continued strength in Nvidia and broader enthusiasm for AI-related tech names.

Europe: Inflation Shock Reverberates Across the Atlantic

European markets mirrored US caution. Germany’s DAX dropped 0.4%, France’s CAC 40 fell 0.5%, and the UK’s FTSE 100 lost 0.6%. Investors reacted to rising US inflation with worries about global monetary policy tightening, further dampening already fragile confidence in the region’s economic recovery.

Asia: China Data Sparks Rally in Regional Equities

Asian markets mostly gained, buoyed by stronger-than-expected economic figures from China. The Hang Seng $HSI(HSI)$  surged 1.6% and Japan’s Nikkei added 0.5% on improved risk sentiment. However, China’s Shanghai Composite slipped 0.4%, as investors booked profits and remained cautious about the sustainability of the recovery.

Outlook & Insights: Tech Resilience vs. Macro Headwinds

Markets remain caught between strong earnings in tech and macroeconomic headwinds like inflation and rate uncertainties. While US tech continues to provide pockets of strength, inflation surprises could challenge the current bullish narrative. The divergence between Asia’s improving fundamentals and Western inflation jitters suggests a potential short-term rotation in capital flows.

Conclusion:

Investor sentiment is increasingly driven by sector-specific strength and macro signals. With inflation data complicating the global outlook, markets may remain volatile in the near term. Staying focused on resilient sectors like tech and monitoring global inflation trends will be key to navigating the weeks ahead.