white and black car on brown sand during daytime by Mateo Giraud courtesy of Unsplash.

Weekly Commentary (07/21/2025): Lazy, Hazy Days of Summer

NDS Investment Committee |

Last week was filled with favorable earnings, mixed economic data, and political jostling.
Investors remained positive as the S&P 500 hit record highs. 
The S&P 500 booked a gain of 0.6% for the week, the Dow Jones was down slightly by 0.05%,
and the Nasdaq composite surged 1.5%.  Technology was the top performing sector, rising nearly
2%. Small companies, as measured by the Russell 2000, rose 0.2%. Foreign markets were also
mixed with developed (MSCI EAFE Index) declining 0.3% while emerging markets (MSCI EM
Index) climbed 1.7%. The price of oil fell 3.5%, with U.S. crude trading at around $66 per barrel,
and gold fell 0.5% to $3,355 an ounce. 
The second quarter earnings of the first three major banks exceeded analysts’ expectations,
reassuring investors that the economy remains resilient. Overall market earnings are expected to
grow 5.6% for the 2 nd Q, according to FactSet.  
On the economic front, the CPI and PPI inflation data for June were in line with expectations.
The U.S. Consumer price index was up 2.7% year-over-year, higher than last month’s 2.4%
reading. The producer price index, which is looked at closely for tariff effects, was 2.3%, below
last month’s revised reading of 2.7%. U.S. retail sales for June exceeded expectations, indicating
the consumer is continuing to spend.  
The bond markets are expecting that the Federal Reserve will unlikely cut interest rates at its July
29th meeting. The 10-year U.S. Treasury ended the week flat with a yield of 4.3% while the 30-
year yield recorded its 4 th weekly gain in a row climbing as high as 5.07%. 
Despite the threat of high tariffs and their inflationary effects, renewed tensions in the Middle
East, and higher for longer interest rates, the economy and financial markets have been very
resilient. We encourage investors to assess the market risk, maintain their long-term allocations,
and remain patient. 
This week there will be several impactful earnings reports and economic releases of leading
economic indicators, home sales, and the Purchasing Managers’ Index (PMI). 
“Summer afternoon- summer afternoon; to me those have always been the two most beautiful
words in the English language.”  - Henry James