Stock Market Summary – July 25, 2025

Despite unresolved tensions related to the Federal Reserve’s rate decision, the July employment report, and tariff deadlines, the S & P 500 has seen record-setting highs following a 30% rebound from its April low. Upcoming factors like the predicted dissenting vote during the Fed meeting and a likely solid employment report could affect upcoming market results. Simultaneously, a 50-50 likelihood of a new trade agreement with the EU and an 83% chance of a deal with China indicate fluctuating international trade relations.

Palantir Technologies rose to being one of the 20 most valuable U.S. companies as its stock doubled in value in 2025, surpassing Home Depot and Procter & Gamble and reaching a market cap of $375 billion. Its growing government business and close ties with the U.S. government are among the factors driving its success.

In Friday’s stock market, a notable gainer was Deckers Outdoor with an 11.5% increase in stock following better-than-expected quarterly reports. However, Intel reported a messy quarter leading to an 8% drop in stock, while JP Morgan downgraded Procter & Gamble due to lackluster expectations. Palantir’s stock also rose after being given an overweight buy rating from Piper Sandler.

In Congress, the new SHARE Act proposes tax incentives for companies that distribute stock to employees, a move that could potentially transfer nearly $4 trillion in stock value to 40 million middle-class Americans.

OpenAI’s efforts to seek independence from Microsoft have raised concerns about the future of Microsoft’s $14 billion investment. If no renegotiation agreement is reached by the end of the year, OpenAI risks losing billions, including $40 billion from SoftBank and other investors. Despite the ongoing negotiations, Microsoft’s AI business has surpassed expectations, with a potential earnings of around $99 billion by 2029 if OpenAI meets its projections.

Stocks closed the week on a high note, with the S&P 500 reaching new record highs. Main gainers included Tesla which jumped more than 4% after reports its robotaxi service will debut in San Francisco. Shares in the gold miner Newmont also went up by 6% after reporting better than expected quarterly earnings, while Deckers Outdoor jumped more than 13% following impressive quarterly results.

On the other hand, Intel saw its stock drop more than 8% following the announcement of slashing foundry costs in an attempt to turn around its struggling business. Shareholders were left concerned despite a better-than-expected earnings report. Intel’s foundry decision was labelled a “positive step” by JPMorgan Chase analysts, but ongoing market share losses remain a concern.

Two companies going through post-earnings slides are Dover and Honeywell. Despite reporting solid earnings, both are down again, frustrating investors. The CNBC Investing Club might consider buying more stocks in these companies.

Charter Communications’ shares dropped almost 17% after disappointing Q2 results, making it the worst day ever for the company. Charter Communications lost broadband and video subscribers, and this news also negatively affected other cable providers like Comcast and Altice.

Next week will be busy for earnings, with around 150 S&P 500 companies set to report. Microsoft, Meta, and the much-awaited tech giants Apple and Amazon will be reporting earnings next week.

Lastly, Intel planning significant spending cuts, Intel’s CEO Lip-Bu Tan announced a number of cutbacks, one of them for a division known as a foundry that produces chips for other companies. The division has an operating loss and needs a major customer.