Market Update
The economy was generally solid in July, with the stock market continuing its upward trend from the second quarter, albeit with some volatility. Both the S&P 500 and the NASDAQ reached record highs in July, buoyed by strong corporate earnings and positive economic sentiment. For much of the month, large caps generally outperformed smaller companies, although the Russell 2000 managed to close July marginally higher.
Inflation remained "somewhat elevated." As of June 2025, the headline Consumer Price Index (CPI) was at 2.7% year over year, while core inflation (excluding food and energy) was at 2.9%. The gross domestic product (GDP) rose 3.0% in the second quarter. The market's deepest decline in 2025 occurred after President Trump announced new tariffs in April, though investor sentiment improved following delays or reductions in most tariffs.
International Markets
European stocks climbed at the end of July after the European Union reached a trade deal with the United States, averting a potentially damaging trade war. European price levels have gradually increased, with annual inflation rising to 2.0% in June from a year earlier. European economic growth has slowed, with gross domestic product ticking up a modest 0.1% in the second quarter. July saw mixed performance in China's stock market and economic indicators, influenced by ongoing trade dynamics, domestic policies, and a cautious global outlook. In July, the STOXX Europe 600 Index ticked up 0.8%; the United Kingdom's FTSE rose 3.8%; Japan's Nikkei 225 Index gained 3.2%; and China's Shanghai Composite Index climbed 3.3%.
On A Personal Note
Jeff and Peggy went to Nashville for a weekend to visit family. July was the last month that Drew had the whole family together as his oldest daughter is headed off to Auburn University. Couple that with his youngest daughter starting her high school soccer season and he is basically an empty nester! Chris and his family were able to get to the lake for some summer fun. Lisa and David spent a long weekend at Dale Hollow Lake in Tennessee with friends. The weather was perfect for boating and floating! Sam had a calm July; he spent most weekends working on his golf fame. It doesn’t seem like the effort is paying off! Taylor took Charlotte to a restaurant for the first time to have brunch with some friends, and it went great! She learned that a lot of prep work is required to go out, but it is well worth it.
