Weekly Digest - Jul 14th

The S&P 500 declined by 0.31% last week as investors paused to digest a wave of headlines spanning geopolitics, interest rates, and crypto surprises. The pullback came after weeks of strong gains, indicating short-term caution appears to be creeping in.

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One of the key headlines was Nvidia breaking through the $4 trillion market cap milestone. The AI chip leader continues to be the poster child of this bull market, and the latest surge reflects unwavering demand for AI infrastructure and the belief that Nvidia still has a lot of growth potential.

Meanwhile, the highly anticipated tariff decision originally set for July 9 was pushed back to August 1. Markets barely reacted to the delay, suggesting investors are betting the eventual decision will be less disruptive than feared. Still, with trade tensions back in the spotlight, any policy shifts next month could trigger volatility.

Geopolitical tensions took on a new dimension as Taiwan launched its largest‑ever Han Kuang military exercise to enhance readiness against potential aggression. The island’s leadership made clear that the purpose was to signal a strong self‑defense commitment to both China and international partners. While these drills are a part of routine, any action by China on Taiwan will have significant ramifications for the world due to the significance of the country in the semiconductor industry.

Donald Trump added fuel to the monetary policy debate, declaring that interest rates in the United States are at least 300 basis points too high. Trump even suggested Powell should resign, accusing him of being too slow in his policy responses and that Powell should face a Congressional investigation. In a latest development, the White House has accused Federal Reserve Chairman Jerome Powell of mismanagement in a renovation project, suggesting costs ballooned beyond initial estimates.

In crypto markets, Bitcoin broke above $120,000, smashing through a multi-year resistance level. Some analysts attribute the move to short covering, while others believe it signals the start of a new bull cycle. Either way, crypto sentiment has turned decisively more optimistic, especially among institutional traders.

Investor optimism still has its champions. Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, projected the S&P 500 could rise to 7000 by year-end, a 12% gain from current levels. She expects AI earnings momentum to lift broader markets well into 2026.

The rally may be intact, but last week’s decline suggests that markets are taking a moment to catch their breath.

Weekly Earnings Roundup: Surprises & Misses

Last week saw earnings from two major companies, Levi Strauss (NYSE: LEVI) and Delta Air Lines (NYSE: DAL).

Levi Strauss reported upbeat earnings, with revenue coming in at $1.4B, rising 6% on a YoY basis. The company also raised its full-year guidance. The company continues to be impacted by tariffs, mentioning that they expect a $25 to $30 million profit hit from the tariffs for the rest of the year. “We are doing our part. We are absorbing some of the costs. What helps is that our business is so strong,” said CEO Michelle Gass. “We are doing our part. We are absorbing some of the costs. What helps is that our business is so strong,” said CEO Michelle Gass. “We have been pulling back on promotions anyway, that’s leading to more full-price selling, and some of our new innovation, our new fits, we’re pricing at a premium, and they’re buying. So all of those things help us navigate this time of having the tariff headwind.” Share price rose by 15% during the week.

Delta Air Lines delivered a strong second quarter, surprising investors with solid profit margins and raised forecasts. EPS came in at $2.10 vs $2.05 expected. Revenue came in at $15.51B vs $15.48B expected. The company also posted strong growth from sales of higher-priced seats like first class and from its lucrative American Express partnership. Management expressed confidence about continued strength heading into fall, reinstating their 2025 profit outlook. Share price rose by 11% during the week.

Top Gainers

WK Kellogg (NYSE: KLG) was the top gainer of the week, with shares jumping around 30% after chocolate giant Ferrero announced plans to acquire the company for $3.1 billion. The deal, if completed, would mark Ferrero’s entry into the breakfast cereal space and signals a bold expansion of its portfolio.

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Fuelled by the crypto rally, MicroStrategy (NASDAQ: MSTR) also posted major gains, rising over 8%. The company has a high exposure to Bitcoin and continues to be highly bullish on the crypto market.

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Intel (NASDAQ: INTC) rose about 4% after it announced job cuts as part of its restructuring strategy.

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Top Losers

Datadog (NASDAQ: DDOG) was among the top losers this week, with its share price declining by 11%. The decline was supposedly triggered by downgrading from Guggenheim Securities over fears that its revenues could erode if its largest customer, OpenAI, moves workloads in-house.

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Accenture (NYSE: ACN) was another major company on the decline, with its share price dropping by 8% during the week. While no particular reason is available for the drop, it is believed to be due to an expected slowdown in the company, which was indicated by the declining bookings reportedin their last quarterly results released recently

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Upcoming Earnings: Key Stocks to Monitor

This week marks the kick-off to earnings season, with several blue-chip names set to report results. Key reports to watch include JP Morgan Chase (NYSE: JPM), Blackrock (NYSE: BLK), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), Johnson & Johnson (NYSE: JNJ), Bank of America (NYSE: BAC), Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS), Netflix (NASDAQ: NFLX), GE Aerospace (NYSE: GE), PepsiCo (NASDAQ: PEP), American Express (NYSE: AXP), and 3M Company (NYSE: MMM).

Banks will face questions about credit quality, deposit trends, and loan demand as interest rates remain elevated. Investors will also be watching Netflix closely to see if its ad-tier and password-sharing crackdown are still driving subscriber growth.

With valuations still rich and expectations running high, these reports could play a decisive role in shaping market direction over the next few weeks.


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