Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) suffered its worst trading session on record Tuesday, plunging as much as 25% in European markets after issuing a surprise profit warning tied to its blockbuster obesity drug Wegovy and <a href="https://www.benzinga.com/topic/weight-loss">appointing a new CEO</a>.



<ul class="wp-block-list">
<li>NVO stock is moving fast. <a href="https://www.benzinga.com/quote/NVO">Check the latest price here. </a></li>
</ul>



The Danish pharmaceutical giant now expects 2025 sales to grow 8%–14%, down from a previous range of 13%–21%, and has cut its operating profit forecast to 10%–16%, from 16%–24%. That marks the second guidance cut of the year.



Shares have now fallen 35% year-to-date and are down a staggering 65% from their June 2023 all-time high, wiping out billions in market cap.



Goldman Sachs analyst James Quigley wrote that the reduced expectations were driven by "no change in the compounded semaglutide headwinds and slower-than-expected commercial progress for both Ozempic and Wegovy, with reimbursement access not progressing as planned."



<h3 class="wp-block-heading">Novo Nordisk Crashes 26% in Worst Day On Record</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="560" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29090951/image-75-1-1024x560.png" alt="" class="wp-image-1005185" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29090951/image-75-1-1024x560.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29090951/image-75-1-300x164.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29090951/image-75-1-768x420.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29090951/image-75-1-1536x840.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29090951/image-75-1-2048x1120.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Key Drivers: Compounding, Competition And Slow Reimbursement</h3>



The company blamed ongoing use of compounded semaglutide drugs in the U.S. for undercutting demand for Wegovy, with the CFO&#8217;s estimates suggesting over 1 million patients are on off-brand versions.



Novo has sued telehealth firms like Hims &amp; Hers Health Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HIMS#NYSE">HIMS</a>) for marketing what it calls knockoff Wegovy, warning about the risks of illicit or unregulated active ingredients.



Meanwhile, lower-than-expected growth for Ozempic in the U.S. diabetes market and sluggish Wegovy penetration overseas also contributed to the downgrade.



"We expect investors to remain cautious on the outlook for Novo and the obesity market, particularly given the slow resolution of compounding, which has been pushed into at least 2026, and due to concerns about potential further price cuts in order to drive access," Quigley said



<h3 class="wp-block-heading">Leadership Shakeup</h3>



Alongside the downgrade, Novo Nordisk appointed Maziar Mike Doustdar as CEO, effective Aug. 7. Currently head of international operations, Doustdar replaces Lars Fruergaard Jorgensen, ousted in May.



Analysts say Doustdar's challenge will be to expand U.S. Wegovy adoption while scaling international markets and managing intensifying competition from Eli Lilly Co.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) Zepbound.



<h3 class="wp-block-heading">Is the Weight-Loss Drug Trade Topping Out?</h3>



With Novo's crash, a broader question looms: Is the weight-loss trade entering correction territory? 



The sharp shift in investor sentiment suggests that valuation multiples may no longer be justified if volume growth stalls and compounding remains unresolved into 2026.



NVO Price Action: Novo Nordisk shares were down 20.36% at $54.95 at the time of publication on Tuesday<a href="https://www.benzinga.com/pro/" target="_blank" rel="noreferrer noopener">, according to Benzinga Pro data.</a>



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Novo Nordisk Implodes After Wegovy Warning—Is The Weight-Loss Bubble Bursting?

Move over, Magnificent Seven—Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) just became a solo act. The GPU giant is now worth more than double the combined market caps of Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) ($1.02 trillion), Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) ($281.57 billion), Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) ($372.58 billion) and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) ($90.52 billion), with a towering <a href="https://www.benzinga.com/quote/NVDA/news">$4.31 trillion valuation</a>. If this isn't peak silicon supremacy, what is?



<ul class="wp-block-list">
<li>Track Nvidia&#8217;s stock surge <a href="https://www.benzinga.com/quote/NVDA">here</a>.</li>
</ul>



While competitors wrangle with execution and margins, Nvidia's AI-fueled engine hasn't missed a beat. And neither have the markets. The stock has rallied nearly 1,566% over the past five years, 58% in the last 12 months, and it shows no signs of cooling, trading at a fresh all-time high of $177 on Monday.



Read Also: <a href="https://www.benzinga.com/markets/tech/25/07/46571093/elon-musk-wants-50-million-ai-brains-nvidia-still-sets-the-standard">Elon Musk Wants 50 Million AI Brains—Nvidia Still Sets The Standard</a>



<h2 class="wp-block-heading">AI's Crown Jewel? Wall Street Thinks So</h2>



Nvidia's valuation metrics are bold, but not entirely bonkers in the age of AI. Per <a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0729">Benzinga Pro</a> data, its price-to-earnings ratio sits at 57x trailing, but the forward P/E of 39.5x suggests earnings are catching up fast. A PEG ratio of 1.71 implies that even with high growth, the stock isn't outrageously priced.



Meanwhile, Nvidia's enterprise value—just a touch under its market cap at $4.27T—indicates a clean balance sheet with little debt drag. With an earnings yield of 1.75%, it&#8217;s not a cash cow like a mature tech name, but investors aren't buying Nvidia for its dividends—they're buying the future.



<h2 class="wp-block-heading">Nvidia's Rise Isn't Just Big—It's Symbolic</h2>



In a way, Nvidia overtaking Tesla, AMD, Palantir, and Intel combined feels poetic. It's not just leading the AI race—it's defining the terrain. Tesla may promise robotaxis, Palantir may promise intelligence, and AMD may promise competition—but for now, Wall Street has spoken.



The future of computing isn't coming—it's already trading at $177 a share.



Read Next: 



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</ul>



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Nvidia Is Now Worth Twice Tesla, AMD, Palantir, And Intel Combined

UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) reported second-quarter 2025 earnings on Tuesday and <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/25/07/46672190/unitedhealth-group-shares-flat-ahead-of-earnings-as-market-awaits-guidance" rel="noreferrer noopener">reestablished its 2025 guidance</a>.



The insurance giant reported adjusted earnings of $4.08, down from $6.80 a year ago, missing the consensus of $4.95.



Revenues increased 13% year over year to $111.62 billion, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus of $111.69 billion</a>.



"UnitedHealth Group has embarked on a rigorous path back to being a high-performing company&#8230;," said UnitedHealth CEO Stephen Hemsley. The company is strengthening operating disciplines, positioning itself for <a href="https://www.benzinga.com/pressreleases/25/07/b46681310/unitedhealth-group-re-establishes-full-year-outlook-and-reports-second-quarter-2025-results" target="_blank" rel="noreferrer noopener">growth in 2026 and beyond</a>, he added.



Also Read: <a href="https://www.benzinga.com/news/legal/25/07/46605691/unitedhealth-under-federal-scrutiny-reaffirms-integrity-of-its-medicare-operations" target="_blank" rel="noreferrer noopener">UnitedHealth Under Federal Scrutiny—Reaffirms Integrity Of Its Medicare Operations</a>



In addition:



<ul class="wp-block-list">
<li>Q2 medical care ratio of 89.4% increased 430 basis points year-over-year.</li>



<li>Operating cost ratio was 12.3% compared to 13.3% in the year-ago quarter reflecting business mix, inclusive of the Part D program changes, reduced impacts from last year's Change Healthcare cyberattack and cost management activities.</li>



<li>Q2 revenue was $86.1 billion, a 17% year-over-year boost. </li>



<li>The segment served 50 million people, an increase of 770,000 year-to-date.</li>



<li>Earnings from operations were $2.1 billion compared to $4.0 billion in the second quarter of 2024, and the margin fell from 5.4% to 2.4% primarily due to higher-than-expected medical cost trends across the UnitedHealthcare businesses and the effects of the Medicare funding reductions.</li>



<li>For the employer and individual segment, the number of people served increased by 400,000 year-over-year, with growth in employer self-funded offerings of 695,000 partially offset by attrition in both individual and group fully insured products.</li>



<li>The number of people served with individual and group Medicare Advantage offerings grew by 505,000 through the first half of 2025. Medicare Supplement plans contracted by 30,000, and Stand-Alone Part D plans decreased by 250,000.</li>



<li>Optum Health's revenue of $25.2 billion decreased 7% year-over-year, driven by the legacy customer contract revisions cited in the first quarter of 2025 and effects related to the Medicare Advantage funding cuts.</li>



<li>Earnings from operations were $636 million, compared to $1.9 billion in the year-ago quarter, and operating margins were 2.5% and 7.1%, respectively.</li>
</ul>



Guidance: UnitedHealth reestablished its fiscal year 2025 guidance, with adjusted earnings of at least&nbsp;$16 per share versus a consensus of&nbsp;$22.33 and sales&nbsp;guidance&nbsp;of&nbsp;$445.5 billion-$448 billion compared to the analyst estimate of $449.5 billion.



In May, UnitedHealth suspended its 2025 performance outlook.



It expected adjusted earnings of $26.00-$26.50 per share versus&nbsp;<a target="_blank" href="https://www.benzinga.com/25/05/45373368/unitedhealth-stock-plunges-names-new-ceo-suspends-2025-guidance" rel="noreferrer noopener">prior guidance of $29.50-$30.00</a> per share, versus consensus of $29.73.



The full-year 2025 medical cost ratio is now expected to be 89.25% +/—25 basis points, with operating cost ratio expected to be 12.75% +/- 25 basis points.



For Optum Health: 2025 revenues are expected to be between $101.1 billion and $101.6 billion, a 4% decline from 2024, with earnings from operations of $3 billion—$3.1 billion below expectations of around $6.6 billion.



<ul class="wp-block-list">
<li>The number of patients served under fully accountable value-based care models is now expected to increase by around 300,000 to 5 million.</li>
</ul>



UnitedHealthcare&#8217;s full-year 2025 revenues are expected to range from $344 billion to $345.5 billion, growing more than 15% over 2024. Earnings from operations are expected to be in the range of $9.0 billion to $9.3 billion.



<ul class="wp-block-list">
<li>The number of people served with medical benefits is expected to increase by up to 1.135 million over 2024.</li>



<li>The number of people served with commercial benefits is expected to increase by up to 335,000, with growth of 720,000 within self-funded employer-sponsored offerings.</li>



<li>The number of people served with commercial insured offerings is expected to decline by 385,000, comprised of 180,000 contraction in individual insured offerings, of which 140,000 are on exchange products, and a decline of 205,000 in employer-sponsored group products.</li>
</ul>



During the earnings conference call, a UnitedHealth executive reportedly said the company will be more conservative with its footprint and may exit certain markets to manage its membership profile.



Price Action: UNH stock is down 4.5% at $269.41 on the last check Tuesday.



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UnitedHealth Misses Q2 Mark But Vows A Healthier 2026

Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) experienced a <a href="https://www.benzinga.com/topic/spotify">notable decline</a> in its stock price on Tuesday following the release of its second-quarter 2025 financial results. 



While the audio streaming giant demonstrated robust growth in its user base, a significant miss on earnings per share and revenue, coupled with a conservative outlook for the upcoming quarter, weighed heavily on investor sentiment.



For the second quarter, Spotify posted a loss of 48 cents per share, a considerable deviation from the analyst <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus estimate of a $2.11 profit</a>.



Also Read: <a target="_blank" href="https://www.benzinga.com/markets/large-cap/25/06/45798733/apple-faces-modest-earnings-hit-after-court-ruling-but-analyst-expects-match-bumble-spotify-set-to-gain" rel="noreferrer noopener">Apple Faces Modest Earnings Hit After Court Ruling But Analyst Expects Match, Bumble, Spotify To Gain</a>



This earnings shortfall was compounded by missed revenue projections, with quarterly sales <a href="https://investors.spotify.com/financials/default.aspx#quarterly-results">reaching $4.75 billion</a> (4.19 billion euros), marking a 10% year-over-year increase but falling short of the analyst projection of $4.84 billion.



<h2 class="wp-block-heading">Strong User Acquisition, But Monetization Challenges Persist</h2>



Operational highlights for the quarter included impressive user acquisition. Monthly active users (MAUs) saw a net addition of 18 million quarter-over-quarter, reaching a total of 696 million, exceeding the company&#8217;s own guidance by 7 million.



Premium subscribers also demonstrated robust growth, expanding by 12% year-over-year to 276 million, outperforming expectations by 3 million and showing consistent growth across all geographical regions.



However, a slight decline was observed in key monetization metrics, with average revenue per user (ARPU) for Premium subscribers falling 1% year-over-year to 4.57 euros, and ad-supported revenue also experiencing a 1% decrease.



From a profitability standpoint, Spotify showcased improved margins. The company&#8217;s gross margin expanded by 227 basis points year-over-year to 31.5%, driven by enhancements in both its Premium and Ad-Supported segments.



The Premium gross margin reached 33.1%, an increase of 171 basis points from the prior year, primarily attributed to revenue growth outpacing music and audiobook costs, albeit partially offset by Spotify partner program expenses.



The ad-supported gross margin saw a more substantial improvement, rising 495 basis points to 18.3%, buoyed by stronger contributions from podcasts and music.



Operating income surged by 53% year-over-year, reaching 406 million euros, with an operating margin of 9.7%. Spotify also reported a strong financial position, holding 8.4 billion euros in cash and equivalents and generating 700 million euros in free cash flow.



The company&#8217;s disciplined approach to expenses was further evidenced by a slight reduction in its global workforce, which stood at 7,309 full-time employees, down from 7,372 a year ago.



<h2 class="wp-block-heading">Conservative Q3 Outlook Weighs on Investor Sentiment</h2>



Despite these operational successes, Spotify&#8217;s third-quarter 2025 revenue outlook fell short of market expectations. The company forecasts revenue of $4.95 billion (4.2 billion euros), below the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">analyst consensus of $5.15 billion</a>, while anticipating total MAUs to reach 710 million.



Prior to the announcement of the 2025 second-quarter results, Spotify&#8217;s stock experienced a strong rally throughout 2025, surging 57% year-to-date and gaining 22% over the last three months.



However, the premarket trading on Tuesday saw SPOT stock trade lower by 6.99% at $652.00, reflecting investor reaction to the earnings miss and softer guidance.



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Photo by Diego Thomazini via Shutterstock

SPOT

Spotify User Base Grows, But Profitability Concerns Linger

Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>), the Danish pharmaceutical giant renowned for its <a href="https://www.benzinga.com/topic/weight-loss">weight-loss</a> drug Wegovy and diabetes treatment Ozempic, experienced a significant downturn on Tuesday following the company&#8217;s decision to trim its 2025 financial outlook.



This marks the <a href="https://www.benzinga.com/25/05/45252150/novo-nordisk-expects-fda-decision-for-oral-wegovy-by-end-of-2025-reports-mixed-q1-earnings">second time this year</a> the company has revised its guidance downwards, signaling growing headwinds in key markets. Novo Nordisk now projects 2025 sales growth to be in the range of 8-14% at constant exchange rates, a notable reduction from its earlier forecast of 13-21%. 



Similarly, the outlook for operating profit growth has been lowered to 10-16% from the previously anticipated 16-24%. This revised guidance largely stems from a slower-than-expected penetration of its branded GLP-1 treatments, particularly in the United States, a market increasingly impacted by the persistent use of compounded GLP-1 alternatives.



Also Read: <a href="https://www.benzinga.com/news/legal/25/07/46635233/judge-rules-mylan-did-not-infringe-novo-nordisk-patent-in-wegovy-generic-case" target="_blank" rel="noreferrer noopener">Judge Rules Mylan Did Not Infringe Novo Nordisk Patent In Wegovy Generic Case</a>



The company specifically cited lower growth expectations for Wegovy in the U.S. obesity market and for Ozempic in the U.S. GLP-1 diabetes market. Furthermore, Wegovy&#8217;s penetration in certain international markets has also fallen short of expectations, attributing to slower market expansion and heightened competition.



In May, Novo Nordisk already lowered its 2025 guidance, reflecting lower-than-planned penetration of branded GLP-1 treatments in the U.S., impacted by <a href="https://www.benzinga.com/25/05/45252150/novo-nordisk-expects-fda-decision-for-oral-wegovy-by-end-of-2025-reports-mixed-q1-earnings" target="_blank" rel="noreferrer noopener">compounded GLP-1s</a>.



Despite the expiry of the FDA&#8217;s <a href="https://www.globenewswire.com/news-release/2025/07/29/3123109/0/en/Novo-Nordisk-lowers-sales-and-operating-profit-outlook-for-2025.html">grace period</a> for mass compounding on May 22, 2025, Novo Nordisk asserts that unsafe and unlawful mass compounding has continued unabated. The company&#8217;s market research indicates that numerous entities persist in marketing and selling compounded GLP-1s under the guise of &#8220;personalization,&#8221; directly impacting Wegovy&#8217;s penetration within the cash payment channel. 



In response, Novo Nordisk has launched NovoCare Pharmacy in March 2025, which has facilitated approximately 11,000 total weekly Wegovy prescriptions, alongside an additional 20,000 weekly prescriptions in the broader retail cash channel.



In the insured channel, new commercial initiatives for Wegovy launched in the first half of 2025 have not fully offset the slower market expansion and competitive pressures, leading to lower-than-anticipated penetration.



To counter these challenges, Novo Nordisk is actively pursuing multiple strategies, including litigation, to safeguard patients from what it terms &#8220;knockoff &#8216;semaglutide&#8217; drugs.&#8221; This comes amid a broader industry concern, highlighted by a recent letter from over 80 bipartisan U.S. congressional members to FDA Commissioner Marty Makary, urging the agency to curb the proliferation of <a href="https://www.benzinga.com/news/fda/25/07/46641326/congress-sounds-alarm-over-illegal-weight-loss-drug-imports-from-china">counterfeit and copycat</a> GLP-1 drugs.



On a more positive note, Novo Nordisk anticipates a beneficial impact from changes to CVS&#8217;s <a href="https://www.benzinga.com/general/health-care/25/05/45140567/cvs-health-partners-with-wegovy-maker-novo-nordisk-hikes-2025-guidance">national template formulary</a>, effective July 1, 2025, where Wegovy is now the sole GLP-1 medication covered for obesity. The company also continues to invest in commercial activities and label updates to enhance Ozempic&#8217;s market penetration, despite increased competition in the U.S.



Internationally, while Wegovy sales are experiencing robust growth rates and launches are progressing, the revised outlook reflects lower-than-expected penetration in select markets due to slower expansion and competition.



For the first six months of 2025, Novo Nordisk reported an 18% increase in sales and a 29% rise in operating profit at constant exchange rates. These figures were positively influenced by gross-to-net sales adjustments related to prior years, including a significant adjustment of approximately $450 million (3 billion Danish kroner) in the second quarter of 2025 pertaining to the 340B provision. Operating profit growth also benefited from the reversal of an ocedurenone impairment in the second quarter of 2024, partially offset by impacts from the acquisition of three Catalent manufacturing sites.



The company&#8217;s free cash flow is now expected to be in the range of 35-45 billion Danish kroner, a revision reflecting the lower projected sales growth, primarily driven by reduced volume growth of GLP-1-based treatments in the U.S. and associated cash flow implications, further amplified by the intricacies of the U.S. gross-to-net system.



In a key regulatory development, Novo Nordisk expects a regulatory decision regarding the Wegovy Metabolic Dysfunction-Associated Steatohepatitis (MASH) indication during the second half of 2025, which could potentially open up a significant new market for the drug.



<h2 class="wp-block-heading">Leadership Transition</h2>



Adding to the day&#8217;s significant announcements, Novo Nordisk also revealed a leadership change. Maziar Mike Doustdar has been appointed as the new president and chief executive officer, effective August 7, 2025. 



Doustdar, currently Novo Nordisk&#8217;s Executive Vice President of International Operations, will succeed Lars Fruergaard Jørgensen, who will be stepping down from his role.



Price Action: In premarket trading on Tuesday, Novo Nordisk&#8217;s stock plummeted 18.5% to $56.21, reflecting investor apprehension regarding the revised financial projections and the ongoing challenges posed by the compounded drug market.



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Image by KK Stock via Shutterstock

Biotech

Ozempic And Wegovy Maker Cuts Outlook In Surprise Move, Picks New CEO

U.S. stock futures rose on Tuesday after ending on a mixed note on Monday. Futures of major benchmark indices were higher.



Despite a mixed close, the S&amp;P 500 posted its sixth day of record closing high, and the Nasdaq also notched an all-time high on Monday.



The Federal Reserve Open Market Committee&#8217;s two-day meeting will begin today, ahead of its press conference, which will be held on Wednesday afternoon.



Investors await results from Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), and Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) today.



Meanwhile, the 10-year Treasury bond yielded 4.41% and the two-year bond was at 3.92%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 96.9% likelihood of the Federal Reserve keeping the current interest rates unchanged in its July meeting.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>0.15%</td></tr><tr><td>S&amp;P 500</td><td>0.24%</td></tr><tr><td>Nasdaq 100</td><td>0.41%</td></tr><tr><td>Russell 2000</td><td>0.31%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Friday. The SPY was up 0.23% at $638.40, while the QQQ advanced 0.42% to $570.54, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



On Monday, the energy and information technology sectors on the S&amp;P 500 closed higher, bucking the trend as most sectors, including real estate, materials, and utilities, recorded losses.



This occurred as U.S. stocks settled mixed, with the S&amp;P 500 itself recording gains, as markets reacted to the U.S.-EU trade deal struck over the weekend.



The new agreement means the U.S. will impose a 15% tariff on EU imports like pharmaceuticals and automobiles, while certain sectors such as steel, aluminum, and copper will face steeper tariffs of up to 50%.



All three major indices closed the last week higher, with the 30-stock Dow gaining around 1.3% and the tech-heavy Nasdaq adding 1%. The broad market S&amp;P 500 climbed around 1.5% last week.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) jumped 3% after the U.S. announced lower-than-expected tariffs on European goods, including autos, and following CEO Elon Musk's revelation of a $16.5 billion deal with Samsung Electronics to produce next-generation chips.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.33%</td><td>21,178.58</td></tr><tr><td>S&amp;P 500</td><td>0.018%</td><td>6,389.77</td></tr><tr><td>Dow Jones</td><td>-0.14%</td><td>44,837.56</td></tr><tr><td>Russell 2000</td><td>-0.19%</td><td>2,256.73</td></tr></tbody></table></figure>



Insights From Analysts:



Senior Economist Jeremy Siegel highlighted in his weekly commentary that the U.S. economy is still proving resilient despite global tensions and trade barriers.



However, he cautioned that investors should prepare for some economic drag as these tariffs take hold in the second half of the year. &#8220;The cumulative inflation impact from tariffs is likely to be modest, perhaps 1.5% to 2% over two years, while the GDP drag remains limited and manageable,&#8221; he said.



He explained that the market has come to terms with this dynamic and continues to look ahead to more powerful, longer-term forces, particularly the ongoing AI.



&#8220;I think the market rightly assesses this will buoy productivity and earnings. In particular, the immediate expensing provision for capital equipment that came in the ‘One Big Beautiful Bill' is a meaningful tailwind for corporate investment, counteracting some negative tariff effects.&#8221;



According to him, earnings season is not showing signs of a breakdown. While there is some cautious forward guidance, the tone has been far more constructive than feared. &#8220;I'm encouraged by year-end earnings estimates, which remain stable or even modestly positive. I continue to believe we are in a healthy bull market with no signs of internal deterioration,&#8221; he added.



From a valuation perspective, Siegel said that some argue markets are expensive.



&#8220;When measuring forward P/E ratios, we are increasingly pricing in next year's earnings, which are supported by strong productivity trends and expanding technology adoption. The 2025–2026 EPS outlook is solid, and while earnings might come down from lofty year-ahead outlooks, I continue to see upside in equities,&#8221; he added.



Meanwhile, Ryan Detrick from Carson Research also reiterated that the market rally has been &#8220;historic,&#8221; but it &#8220;likely has legs left.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Don&#39;t stop believing. This rally has been historic, but it likely has legs left. Talking with <a href="https://twitter.com/sonusvarghese?ref_src=twsrc%5Etfw">@sonusvarghese</a> about it all in our latest Facts vs Feelings &#x1f440; <a href="https://t.co/yzIlXWwqbZ">https://t.co/yzIlXWwqbZ</a> &#x1f3a7;<a href="https://t.co/rbZGmRxOa1">https://t.co/rbZGmRxOa1</a> <a href="https://t.co/5vPmnmJOOx">pic.twitter.com/5vPmnmJOOx</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1950002858570494054?ref_src=twsrc%5Etfw">July 29, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Tuesday:



<ul class="wp-block-list">
<li>June&#8217;s advanced U.S. trade balance in goods, retail inventories, and wholesale inventories data will be announced by 8:30 a.m. ET.</li>



<li>May&#8217;s S&amp;P Case-Shiller home price index for 20 cities will be out by 9:00 a.m., July&#8217;s consumer confidence data, and June&#8217;s job openings data will be released by 10:00 a.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) was up 0.14% in premarket on Tuesday as analysts expect it to report a quarterly loss of 94 cents per share on revenue of $20.20 billion before the opening bell.</li>



<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) declined 0.41% as it is expected to report earnings before the opening bell. Analysts estimate earnings of $1.42 per share on revenue of $20.76 billion.</li>



<li>Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) was 0.18% higher as analysts expect it to report earnings of 65 cents per share on revenue of $9.29 billion after the closing bell.</li>



<li>Waste Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WM#NYSE">WM</a>) rose 0.48% after posting upbeat earnings for the second quarter, but lowered its FY2025 sales guidance.</li>



<li>Koninklijke Philips NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHG#NYSE">PHG</a>) jumped 9.31% after posting better-than-expected earnings for the second quarter. Philips posted quarterly adjusted earnings of 41 cents per share, beating market estimates of 29 cents per share.</li>



<li>Cadence Design Systems Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) climbed 6.52% after it lifted its full-year outlook after the second quarter results topped estimates.</li>



<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) gained 1.75% following the news of a new strategic partnership and reports of softened trade enforcement between the U.S. and China.</li>



<li>VeriSign, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSN#NASDAQ">VRSN</a>) tumbled 6.20% after declaring that its board has approved a stock repurchase plan of up to $1.11 billion in shares.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.79% to hover around $67.24 per barrel.



Gold Spot US Dollar rose 0.23% to hover around $3,322.20 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.17% at the 98.7980 level.



Asian markets mostly advanced on Tuesday, except Japan's Nikkei 225 and Hong Kong's Hang Seng indices. South Korea's Kospi, India's S&amp;P BSE Sensex, China&#8217;s CSI 300, and Australia's ASX 200 indices rose. European markets were mostly higher in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/07/46679779/opendoor-skyrockets-314-in-a-month-amid-meme-stock-mania-hedge-fund-manager-who-reaped-windfall-gains-says-im-not-here-to-pump-up-a-stock">Opendoor Skyrockets 314% In A Month Amid Meme Stock Mania: Hedge Fund Manager Who Reaped Windfall Gains Says &#8216;I&#8217;m Not Here To Pump Up A Stock&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

CDNS

SBUX

SMCI

VRSN

Stock Market Today: US Futures Rise Following S&P 500's 6-Days Of Record Close—Boeing, P&G, Starbucks Earnings In Focus

Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) will close one of its retail locations in China next month, marking the first store closure in the country since the tech giant entered the market in 2008.



What Happened: On Monday, the company announced it will shut down its store at Parkland Mall in Dalian City's Zhongshan District on Aug. 9, citing a broader decline in the mall&#8217;s retail presence, <a href="https://www.nytimes.com/2025/07/29/business/apple-china-dalian-store.html">reported</a> the New York Times.&nbsp;



Several major brands, including Michael Kors and Armani, have already exited the location, and locals have described the mall as struggling.



"Given the departure of several retailers at the Parkland Mall, we have made the decision to close our store," said Apple spokesperson Brian Bumbery in a statement. "We love serving the Dalian community, and all of our valued team members will have the opportunity to continue their roles with Apple."



See Read:&nbsp;<a href="https://www.benzinga.com/news/topics/25/07/46383701/apple-undergoing-major-management-overhaul-but-ceo-tim-cook-to-stay-on" target="_blank" rel="noreferrer noopener">Apple Undergoing Major Management Overhaul, But CEO Tim Cook To Stay On</a>



The company said it will continue operating its second Dalian location at Olympia 66 and remains committed to its presence in the region. A new Apple Store is set to open in Shenzhen later this month.



Why It's Important: The closure signals growing challenges for Apple in its second-largest market, where it has reported six consecutive quarters of declining sales.



Last year, revenue from Greater China fell to $66.95 billion, down nearly 10% from its 2022 peak.



Apple is also under <a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45930835/iphone-sales-rebound-in-china-but-apples-next-move-could-be-risky">increasing pressure</a> from Chinese smartphone competitors such as Huawei Technologies, Xiaomi (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACF#OTC">XIACF</a>) and Vivo, which have eaten into its market share.



According to Counterpoint Research, Apple's share of China's smartphone market dropped to 15.5% in 2024, down from 17.9% the year before.



With the Parkland Mall closure, Apple will still end 2025 with 58 stores in China, maintaining its current store count despite the strategic exit.



Price Action: Apple shares inched up 0.079% during Monday's regular session and rose another 0.028% after hours, according to <a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0717">Benzinga Pro</a>.



Benzinga's Edge Stock Rankings indicate that AAPL shows strong momentum over the short and medium term, though it trends downward over the long run. Despite boasting a solid quality score, the stock continues to carry a relatively weak value rating. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-4/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">More detailed performance insights are available here</a>.



<figure class="wp-block-image aligncenter size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-4/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29040330/Screenshot-2025-07-29-at-1.31.21%E2%80%AFPM.png" alt="" class="wp-image-1004623"/></a></figure>



Read Next



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/06/45852024/apples-liquid-glass-interface-set-to-revolutionize-ios-26-hints-at-20th-anniversary-iphone" target="_blank" rel="noreferrer noopener">Apple&#8217;s Liquid Glass Interface Set To Revolutionize iOS 26, Hints At 20th Anniversary iPhone</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

AAPL

XIACF

Apple To Shut Down China Retail Store For First Time Ever, Citing Shifting Mall Landscape Amid Consumer Slowdown

A newly finalized trade agreement between the <a href="https://www.benzinga.com/news/politics/25/07/46650830/donald-trump-announces-15-tariff-trade-agreement-with-eu-ending-months-of-trade-uncertainty">U.S. and the European Union</a> is poised to significantly benefit U.S.-based LNG exporters, the Magnificent 7 technology giants, and the broader tech sector, according to market experts.



What Happened: The <a href="https://www.benzinga.com/news/politics/25/07/46650830/donald-trump-announces-15-tariff-trade-agreement-with-eu-ending-months-of-trade-uncertainty">deal</a>, announced ahead of the Aug. 1 deadline, is seen as removing a key layer of uncertainty that had hung over the markets. 



Louis Navellier, founder and chief investment officer of Navellier &amp; Associates, told <a href="http://pro.benzinga.com/dashboard">Benzinga</a> that LNG exporters such as Dorian LPG Ltd. as likely winners. He noted that &#8220;the analyst community is revising their earnings estimates higher&#8221; for these companies.



The trade deal includes the EU's commitment to purchase $750 billion in U.S. energy over three years and invest another $600 billion in the U.S. economy.



Navellier also pointed to the &#8220;Magnificent 7 and other big U.S. technology companies&#8221; as beneficiaries, anticipating that &#8220;the EU is expected to be more reluctant to hit them with digital taxes&#8221; under the Donald Trump Administration.



The agreement&#8217;s impact extends to the overall U.S. stock market. Chris Zaccarelli, chief investment officer at Northlight Asset Management, told Benzinga that he views the deal as &#8220;good for US markets as it removes some of the uncertainty that was an overhang for the market, and at a 15% rate, it is lower than what was originally feared.&#8221;



Zaccarelli reiterated the positive outlook for technology and emphasized the energy sector, stating it &#8220;will be an even bigger beneficiary because of the intent of the EU to buy more energy from the United States as a result of the new trade deal.&#8221;



While the deal brings clarity, some of the positive news may have already been factored into stock prices. Zaccarelli noted, &#8220;news of this deal being &#8216;close&#8217; was released last week and some of the good news was likely already reflected in prices before today's official announcement.&#8221;



Here&#8217;s a list of the energy and technology sector beneficiaries highlighted by experts;



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Energy Stocks</td><td>YTD Performance</td><td>One-Year Performance</td></tr><tr><td>Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)</td><td>3.85%</td><td>-4.01%</td></tr><tr><td>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td><td>6.52%</td><td>-0.20%</td></tr><tr><td>Occidental Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)</td><td>-8.55%</td><td>-24.31%</td></tr><tr><td>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>)</td><td>-2.45%</td><td>-2.82%</td></tr><tr><td>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>)</td><td>23.54%</td><td>1.65%</td></tr><tr><td>CVR Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVI#NYSE">CVI</a>)</td><td>52.93%</td><td>6.69%</td></tr><tr><td>Schlumberger NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>)</td><td>-6.25%</td><td>-24.78%</td></tr><tr><td>Dorian LPG Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPG#NYSE">LPG</a>)</td><td>18.02%</td><td>-25.71%</td></tr></tbody></table></figure>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Energy ETFs</td><td>YTD Performance</td><td>One-Year Performance</td></tr><tr><td>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>)</td><td>0.31%</td><td>2.63%</td></tr><tr><td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td><td>-11.66%</td><td>-16.09%</td></tr><tr><td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td><td>-2.89%</td><td>-8.66%</td></tr></tbody></table></figure>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Big Tech Stocks And ETF</td><td>YTD Performance</td><td>One-Year Performance</td></tr><tr><td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td><td>27.79%</td><td>58.39%</td></tr><tr><td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td><td>-12.22%</td><td>-1.92%</td></tr><tr><td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td><td>22.44%</td><td>20.10%</td></tr><tr><td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td><td>5.71%</td><td>27.07%</td></tr><tr><td>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td><td>1.46%</td><td>13.03%</td></tr><tr><td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td><td>19.76%</td><td>54.09%</td></tr><tr><td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td><td>-14.16%</td><td>40.28%</td></tr><tr><td>Roundhill Magnificent Seven ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#BATS">MAGS</a>)</td><td>7.46%</td><td>31.23%</td></tr></tbody></table></figure>



See Also: <a href="https://www.benzinga.com/markets/equities/25/07/46679779/opendoor-skyrockets-314-in-a-month-amid-meme-stock-mania-hedge-fund-manager-who-reaped-windfall-">Opendoor Skyrockets 314% In A Month Amid Meme Stock Mania: Hedge Fund Manager Who Reaped Windfall Gains Says &#8216;I&#8217;m Not Here To Pump Up A Stock&#8217;</a>



Why It Matters: Looking ahead, experts believe the Aug. 1 deadline is largely being adhered to, providing further market certainty.



However, major outstanding trade negotiations include China, where Treasury Secretary Scott Bessent is reportedly in talks to extend the Aug. 14 deadline, and continuing discussions with Mexico and Canada.



Smaller deals with other nations are also anticipated to be finalized by the end of this week.



Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, ended on a mixed note on Monday. The SPY was down 0.025% at $636.94, while the QQQ advanced 0.31% to $568.14, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



On Tuesday, the futures of the Dow Jones, S&amp;P 500, and Nasdaq 100 indices were trading higher.



Read Next:



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<li><a href="https://www.benzinga.com/markets/equities/25/07/46657284/palantirs-next-stop-is-200-says-jim-cramer-as-pltr-glides-like-a-knife-through-butter" target="_blank" rel="noreferrer noopener">Palantir's Next Stop Is $200, Says Jim Cramer As PLTR Glides ‘Like A Knife Through Butter'</a></li>
</ul>



Photo courtesy: Shutterstock

AMZN

GOOG

MAGS

MSFT

Trump's EU Deal 'Good For US Markets,' Say Experts: META, AAPL, PLTR Among Likely Winners — See Full List

The CNN Money Fear and Greed index showed some decline in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Monday.



U.S. stocks settled mixed on Monday, with the S&amp;P 500 recording gains as markets reacted to the U.S.-EU trade deal struck over the weekend. Under the new trade agreement, the U.S. will impose a 15% tariff on EU imports, including pharmaceuticals and automobiles. Certain sectors, such as steel, aluminum, and copper, will face steeper tariffs of up to 50%.



All three major indices closed the week higher, with the 30-stock Dow gaining around 1.3% and the tech-heavy Nasdaq adding 1%. The broad market S&amp;P 500 climbed around 1.5% last week.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) jumped 3% after the U.S. announced lower-than-expected tariffs on European goods, including autos, and following CEO Elon Musk&#8217;s revelation of a $16.5 billion deal with Samsung Electronics to produce next-generation chips.



Most sectors on the S&amp;P 500 closed on a negative note, with real estate, materials and utilities stocks recording the biggest losses on Monday. However, energy and information technology stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by 64 points to 44,837.56 on Monday. The S&amp;P 500 gained 0.02% to 6,389.77, while the Nasdaq Composite gained 0.33% to 21,178.58 during Monday's session.



Investors are awaiting earnings results from Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) and Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 73.3, the index remained in the &#8220;Greed&#8221; zone on Monday, versus a prior reading of 73.9.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next:



<ul class="wp-block-list">
<li> <a href="https://www.benzinga.com/trading-ideas/dividends/25/07/46656981/wall-streets-most-accurate-analysts-give-their-take-on-3-utilities-delivering-high-dividend-yields">Wall Street&#8217;s Most Accurate Analysts Give Their Take On 3 Utilities Delivering High-Dividend Yields</a></li>
</ul>



Photo courtesy: Shutterstock

Pre-Market Outlook

US Stocks Settle Mixed Following US-EU Trade Deal: Investor Sentiment Edges Lower, But Fear Index Remains In 'Greed' Zone

Leading cryptocurrencies dipped on Monday, reflecting a decline in institutional interest and caution ahead of the Federal Reserve&#8217;s policy meeting.



<figure class="wp-block-table"><table class="has-fixed-layout"><thead><tr><th>Cryptocurrency</th><th>Gains +/-</th><th>Price (Recorded at 11:30 p.m. ET)</th></tr></thead><tbody><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-1.04%</td><td>$118,396.13</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-1.62%</td><td>$3,816.44</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-6.13%</td><td>$0.2281</td></tr></tbody></table></figure>



What Happened: The apex cryptocurrency rebounded after hitting the ceiling around $120,000, hitting intraday lows of $117,441.44. Trading volume rose 16.79% to over $65 billion in the last 24 hours.



Institutional interest in the asset declined, with Strategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) <a href="https://www.benzinga.com/crypto/cryptocurrency/25/07/46665873/strategy-announces-no-new-bitcoin-purchases-but-heres-who-bought-755-btc">halting its BTC accumulation streak</a> last week.



Ethereum also encountered sharp profit-taking, following a 56% monthly rally that brought it within touching distance of $4,000.



Bitcoin's market dominance rose to 60.7%, signaling capital rotation from altcoins, while Ethereum's share shot up to 11.8%, the highest since mid-January.



Cryptocurrency liquidations shot up to $450 million in the last 24 hours, with bullish bets accounting for 82% of the total.



Bitcoin's open interest dropped slightly by 0.76% in the last 24 hours, with the majority of Binance traders with open BTC positions betting on further price declines, according to the Long/Shorts ratio.&nbsp;



The "Greed" sentiment weakened in the last 24 hours, according to the Crypto Fear &amp; Greed Index.



Top Gainers (24 Hours)



<figure class="wp-block-table"><table class="has-fixed-layout"><thead><tr><th>Cryptocurrency</th><th>Gains +/-</th><th>Price (Recorded at 11:30 p.m. ET)</th></tr></thead><tbody><tr><td>Conflux (CFX)&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+5.99%</td><td>$0.1982</td></tr><tr><td>TRON (TRX)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.49%</td><td>$0.3258</td></tr><tr><td>UNUS SED LEO (LEO)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+0.07%</td><td>$8.97 </td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.88 trillion, following a 1.77% decline in the last 24 hours.



Stocks rose to new highs on Monday. The S&amp;P 500 eked out a narrow gain of 0.02% to close at a record high of 6,389.77. The tech-heavy Nasdaq Composite climbed 0.33% to 21,178.58, also a record closing high. The Dow Jones Industrial Average, however, was the outlier, falling 64.36 points, or 0.14%, to end at 44,837.56.



Investors are expecting the Federal Reserve&#8217;s interest rate decision this week, with the market pricing in a 97% chance that rates will remain steady, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according </a>to the CME FedWatch tool. Additionally, July's employment report, unemployment rate and hourly wages data will be on their radar.&nbsp;



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Blockchain analytics firm CryptoQuant stated that the unrealized profit of Bitcoin's short-term holders remains limited to 13%, compared to 232% and 150% in bull cycles of 2012 and 2021, respectively, making them "less likely" to sell quickly.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">On Chain Traders Are Sitting on Just 13% Gains "While in previous market tops, in 2012 and 2021, this group's average profit reached 232% and 150% respectively. During this current cycle, their profit peaked at only 69% and is declining over time." – By <a href="https://twitter.com/Darkfost_Coc?ref_src=twsrc%5Etfw">@Darkfost_Coc</a> <a href="https://t.co/eP5hSOBv39">pic.twitter.com/eP5hSOBv39</a>&mdash; CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1949821160071266359?ref_src=twsrc%5Etfw">July 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Widely followed cryptocurrency analyst and trader Michaël van de Poppe noted Bitcoin's rejection at a key resistance level, around $120,000.



"Interesting price action to start the week, it&#8217;s probably going to be a violent one," the analyst predicted.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> rejecting at the crucial resistance and continuing to fall down to close the CME gap. Interesting price action to start the week, it&#39;s probably going to be a violent one. <a href="https://t.co/EwnetdDKE5">pic.twitter.com/EwnetdDKE5</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1949846054293405954?ref_src=twsrc%5Etfw">July 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: Travis Wolfe on Shutterstock.com



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



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<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/07/46677711/anthony-scaramucci-says-itll-be-a-big-deal-if-jamie-dimon-led-jpmorgan-allows-lending-against-bitcoin">Anthony Scaramucci Says It&#8217;ll Be A &#8216;Big Deal&#8217; If Jamie Dimon-Led JPMorgan Allows Lending Against Bitcoin</a></li>
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Cryptocurrency

$BTC

$DOGE

$ETH

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Bitcoin Drops As Michael Saylor's Strategy Halts Accumulation Streak; Ethereum, Dogecoin Also Dip: Analyst Expects 'Violent' Week Ahead

Sony Group Corp.'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) Interactive Entertainment has accused Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) of copying its popular &#8220;Horizon&#8221; video game series, filing a federal lawsuit that alleges the Chinese tech giant&#8217;s upcoming game, "Light of Motiram," is a near-exact replica.



What Happened: Filed Friday in the U.S. District Court for the Northern District of California, the lawsuit claims Light of Motiram is a "slavish clone" of Sony's Horizon franchise, copying gameplay, story themes and visual elements, reported Reuters.



Sony said the similarities extend to the game's post-apocalyptic setting, robot creatures, and a red-haired female protagonist, all central to its Horizon games, which began with Horizon Zero Dawn in 2017.



See Also:&nbsp;<a href="https://benzinga.com/markets/macro-economic-events/25/07/46651859/trumps-new-eu-trade-deal-labeled-bad-news-by-economists-as-dow-futures-spike-over-1" target="_blank" rel="noreferrer noopener">Trump&#8217;s New EU Trade Deal Labeled ‘Bad News&#8217; By Economists As Dow Futures Spike Over 150 Points</a>



Sony also revealed it declined a collaboration offer from Tencent last year for a Horizon-related project, only for Tencent to later announce Light of Motiram, prompting accusations of intellectual property theft.



Sony and Tencent did not immediately&nbsp;respond to <a href="https://pro.benzinga.com/dashboard">Benzinga's</a> request for comments.



Price Action: On Monday, Sony shares fell 2.09% during regular trading but ticked up 0.25% after hours, ending the day at $24.42, according to <a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0717">Benzinga Pro</a>.



Benzinga's Edge Stock Rankings indicate that SONY is experiencing short-term downward momentum, though it maintains solid upward momentum in the medium and long term. The stock receives strong marks for quality, but its value score remains comparatively weak. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-4/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Additional performance metrics can be found here</a>.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-4/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/29000334/Screenshot-2025-07-29-at-9.25.21%E2%80%AFAM.png" alt="" class="wp-image-1004342"/></a></figure>



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<li><a href="https://benzinga.com/news/topics/25/07/46635987/deltas-ai-now-sets-unique-prices-for-each-passenger-heres-what-we-know" target="_blank" rel="noreferrer noopener">Delta&#8217;s AI Now Sets Unique Prices For Each Passenger—Here&#8217;s What We Know</a></li>
</ul>



Photo courtesy: testing / Shutterstock.com



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

SONY

TCEHY

Sony Files Federal Lawsuit Against Tencent, Claims Upcoming Game 'Light Of Motiram' Rips Off Horizon's Story, Gameplay And Art

Economist Peter Schiff warns that President Donald Trump&#8217;s trade deals, which involve commitments for purchasing more U.S. goods, could have unintended consequences for inflation and treasuries.



What Happened: On Monday, in a post on X, Schiff flagged concerns regarding the commitments made by foreign governments to purchase more American goods. 



He says, &#8220;As part of his trade deals, Trump is getting commitments from foreign governments to purchase more U.S. goods,&#8221; but Schiff believes that these deals come with a trade-off, such as &#8220;buying fewer U.S. Treasuries,&#8221; which he says leads to higher U.S. consumer prices and interest rates. 



See Also: <a href="https://www.benzinga.com/markets/equities/25/07/46667345/wall-street-today-stocks-monday-us-eu-trade-deal-oil-energy">Oil, Energy Stocks Rise, Dollar Rallies On US-EU Trade Deal: What&#8217;s Moving Markets Monday?</a>



He says, &#8220;buying more U.S. goods will likely come at the cost of buying fewer U.S. Treasuries, putting added upward pressure on U.S. consumer prices and interest rates.&#8221;



Schiff&#8217;s claim hinges on the dynamic that if foreign buyers redirect capital from U.S. Treasuries to American-made products, the shift could reduce demand for government bonds. In turn, lower demand for Treasuries could lead to higher yields, thus increasing interest rates.



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As part of his trade deals, Trump is getting commitments from foreign governments to purchase more U.S. goods. However, buying more U.S. goods will likely come at the cost of buying fewer U.S. Treasuries, putting added upward pressure on U.S. consumer prices and interest rates.&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1949861579878498578?ref_src=twsrc%5Etfw">July 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: As part of Trump&#8217;s latest trade deal with the European Union, the latter has committed to <a href="https://www.benzinga.com/markets/macro-economic-events/25/07/46651859/trumps-new-eu-trade-deal-labeled-bad-news-by-economists-as-dow-futures-spike-over-150-points">purchasing $750 billion</a> worth of American energy, with nations in the bloc also agreeing to buy American weapons. 



Similarly, the trade deal with Indonesia two weeks ago <a href="https://www.benzinga.com/markets/asia/25/07/46434093/trump-says-hes-finalized-the-trade-deal-with-indonesia-touts-orders-for-50-boeing-jets-will-china-face-tougher-times-ahead">involved a purchase order</a> for 50 Boeing jets, &#8220;many of them 777s,&#8221; as Trump said, which is in addition to buying $15 billion worth of U.S. energy and $4.5 billion in agricultural products. 



Last week, the Trump administration <a href="https://www.benzinga.com/markets/economic-data/25/07/46562556/trump-says-550-billion-trade-deal-with-japan-reached-that-will-create-thousands-of-jobs-there-has-never-been-anything-like-it">finalized a trade agreement</a> with Japan that includes expanded market access for U.S. cars, trucks, rice, and other agricultural goods. As part of the deal, Japan has also pledged to invest $550 billion in the United States.



Trump said in a Truth Social post, &#8220;Japan will invest, at my direction, $550 billion dollars into the United States, which will receive 90% of the Profits.&#8221;



However, earlier this week, Tokyo&#8217;s Chief Negotiator, Ryosei Akazawa, clarified that only about 1% to 2% of this <a href="https://www.benzinga.com/news/politics/25/07/46654164/trumps-550-billion-japan-investment-deal-isnt-what-it-seems-tokyos-top-negotiator-says-98-of-it-will-be-loans-and-guarantees">$550 billion will be investments</a>, with the rest structured as loans and guarantees.



Price Action: U.S. 10-Year Treasuries trade at 4.404%, while the 5-Year and 3-Year papers yield 3.965% and 3.872%, respectively, at the time of writing.



Photo Courtesy: Studio Romantic on Shutterstock.com



Read More: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/macro-economic-events/25/07/46622277/trumps-trade-deal-with-japan-a-tax-on-americans-economist-says-not-remotely-optimis">Trump&#8217;s Trade Deal With Japan A Tax On Americans — Economist Says, &#8216;Not Remotely Optimistic&#8217; US Auto Companies Will Gain As Toyota And Honda Stocks Rally</a></li>
</ul>

Government

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Trump's Trade Deals Have A Hidden Cost, Says Economist Peter Schiff: Less Demand For Treasuries, Higher Prices For Consumers

A trade deal designed to stabilize transatlantic relations is delivering a very unexpected outcome in currency markets: a surging U.S. dollar and a battered euro.



<ul class="wp-block-list">
<li>SPY ETF hit new record highs on July 28. <a href="https://www.benzinga.com/quote/SPY">Check the price action here.</a></li>
</ul>



On Monday, the U.S. dollar index (DXY) jumped 1%, its best single-day performance in over two months, as investors absorbed the details of the U.S.-EU trade agreement struck by President Donald Trump and European Commission President Ursula von der Leyen over the weekend. 



Mirroring the dollar move but in reverse, the euro posted its worst day since May—and its second-worst of 2025. 



Chart: Dollar Index Notches Rare 1% Daily Rally After US-EU Trade Deal



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="560" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/28154014/image-432-1024x560.png" alt="" class="wp-image-1003947" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/28154014/image-432-1024x560.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/28154014/image-432-300x164.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/28154014/image-432-768x420.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/28154014/image-432-1536x840.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/28154014/image-432-2048x1120.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">A Deal That Strengthens The US Economic Hand</h3>



While headlines focused on the 15% tariff cap the U.S. will impose on EU goods—down from the 30% level previously threatened—the agreement includes massive fiscal and energy concessions from the European side.



Key terms of the deal include:



<ul class="wp-block-list">
<li>$750 billion in U.S. energy purchases over three years, a 150% jump from current levels</li>



<li>$600 billion in EU investment into the U.S. economy</li>



<li>Large-scale purchases of U.S. AI chips and military equipment</li>



<li>Zero tariffs on high-value sectors like aircraft and parts, despite sectoral tariffs of 50% on steel, aluminum and copper</li>
</ul>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
"Politically, this agreement looks like a clear win for the U.S.," said Oliver Rakau, economist at Oxford Economics.
</blockquote>



Read also: <a href="https://www.benzinga.com/etfs/sector-etfs/25/07/46663043/trump-eu-us-energy-trade-deal-750-billion-oil-stocks-xle">Trump&#8217;s $750 Billion Coup In Europe Could Bring Energy Stocks Back From The Dead</a>



<h3 class="wp-block-heading">Why Is The Dollar Rallying After The US-EU Trade Deal?</h3>



The sharp move in the dollar wasn't just about the deal's fundamentals—it was also about positioning. Ahead of the weekend agreement, traders were heavily short the greenback. 



Net non-commercial positions in CME dollar futures sat at a negative 14,749 contracts, near a three-year low, indicating widespread bearish bets.



That left the market vulnerable to a sharp reversal. Monday's rally may have already triggered a wave of short covering, and if the dollar continues climbing, positioning alone could further amplify the move.



"The U.S. dollar began the week on the front foot, making gains versus all the majors," said David Morrison, senior market analyst at Trade Nation.



"It's interesting that the U.S. dollar should be the major beneficiary from the breakthrough, rather than the euro. Could this signal that the bottom is in for the greenback after the Dollar Index hit a multi-year low at the beginning of the month?" he added.



While the trade deal tilted flows in the dollar's favor, the macro calendar is also fueling greenback strength. 



Analysts at ING flagged this week's data slate—second-quarter GDP, Personal Consumption Expenditure inflation, July FOMC meeting and July&#8217;s jobs report—as likely to support the Fed's patient stance and challenge expectations for a September rate cut.



"This should leave the majority of the Fed comfortable in their patient position on interest rates," ING&#8217;s analyst Chris Turner wrote.



&#8220;We continue to favour a period of consolidation for the dollar,&#8221; he added. 



<h3 class="wp-block-heading">Goldman Sticks To Long-Term Dollar Bearish View</h3>



Despite the dollar's strong reaction to the US-EU trade agreement, Goldman Sachs remains cautious on the long-term outlook. 



According to Kamashka Trivedi, a currency analyst at the bank, the structure of the deal—while avoiding an all-out tariff war—cements higher baseline tariffs that could ultimately erode U.S. trade dynamics.



"This direction of travel should keep the dollar under pressure—especially as the baseline tariff turns from a &#8216;pause&#8217; placeholder to the new reality," she said.



Goldman's position contrasts with the immediate bullish reaction from spot currency markets, suggesting that short-term strength may be temporary and potentially fade as the economic implications of the deal settle in.



Read now:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/07/46661023/fed-rate-cuts-goldman-forecast-2025-inflation">Get Ready For Five Fed Cuts, Markets Got It All Wrong: Goldman Sachs </a></li>
</ul>



Image: Shutterstock

Regulations

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Trump's Charm Offense In Europe Unleashes Dollar Thunder

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="683" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28183159/Tether-Trump-Signature-KMR-Canva-1024x683.png" alt="Trump signs stablecoin law, the GENIUS Act." class="wp-image-16534" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28183159/Tether-Trump-Signature-KMR-Canva-1024x683.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28183159/Tether-Trump-Signature-KMR-Canva-300x200.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28183159/Tether-Trump-Signature-KMR-Canva-768x512.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28183159/Tether-Trump-Signature-KMR-Canva.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">US Dollar Tether coin with President Trump&#8217;s signature superimposed. Image created by the author.</figcaption></figure>



President Donald Trump <a href="https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-signs-genius-act-into-law/">signed </a>the GENIUS Act into law on July 18, ushering in the most comprehensive U.S. framework for stablecoins to date. While some in crypto view it as long-overdue clarity, others worry it may entrench incumbents and freeze out startups.



First the good news. Regulations are needed to make sure stablecoins are trustworthy, safe, and easy to understand for issuers who operate in a global market.



Arthur Breitman, Cofounder of Tezos (XTZ), said the one of the best things about the GENIUS Act is that it lays out a clear set of rules for U.S.-based dollar-linked stablecoin issuers. "And it also marks a sharp turning point with the U.S. administration embracing innovation rather than fighting it," Breitman said.



He predicts the GENIUS act means we will likely see many more stablecoin issuers, "in particular from traditional finance."



According to the law, traditional banks like Bank of America, for instance, must establish separate entities if they want to issue stablecoins. Also, the GENIUS Act does not protect your stablecoins, which are a digital currency, even if you got them at a BofA branch. The GENIUS Act establishes <a href="https://www.banking.senate.gov/newsroom/majority/fact-sheet-the-genius-act-protects-consumers">strict marketing standards</a> for stablecoins, meaning no one can market them as being covered by FDIC insurance.&nbsp;



<h2 class="wp-block-heading">No Slam Dunk for Big Tech&nbsp;</h2>



<a href="https://www.benzinga.com/content/46512492/genius-act-includes-clause-to-block-big-tech-and-wall-street-from-stablecoin-dominance">The same applies for Big Tech </a>companies like Meta Platforms (META), which had once dabbled in the stablecoin space.  Like any traditional bank, tech companies wanting to issue stablecoins to create online market places must obtain clearance from a Treasury-led oversight committee with veto authority.



"I think its great how it keeps the Web2 giants from muscling their way into stablecoins," said Shady El Damaty, CEO at the Holonym Foundation, the driving force behind Human.Tech – a cryptography-first identity and personhood platform that differentiates real people from artificial intelligence. "It would be a disaster for consumers and for competition if Apple or Meta issued their own stablecoin," he said, alluding to the fact that their size would immediately absorb market share from the start up foundations that have been at this for years, and developed this market in the first place.



The first stablecoin was BitUSD.&nbsp; It was launched in July 2014 by the BitShares blockchain platform. BitUSD was backed by the native token of BitShares at the time and created through smart contracts that locked cash collateral at a ratio of 1:1.



U.S. Dollar Coin (USDC)and Tether (USDT) are the biggest stablecoins in use today. USDC was created by Circle Internet Financial (CRCL) in Boston around 2018. 



Tether Limited created USDT in July 2014. The company was co-founded by Brock Pierce, Reeve Collins, and Craig Sellars. Giancarlo Devasini, CFO of Bitfinex, later emerged as the <a href="https://www.benzinga.com/markets/cryptocurrency/23/10/35171909/bitfinex-parent-company-considers-150m-share-repurchase">central figure and major shareholder of Tether</a>. He is still a major player at Tether.



<figure class="wp-block-image alignright size-full"><img loading="lazy" decoding="async" width="615" height="375" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28181524/Screenshot-2025-07-28-at-14-15-03-Circle-Internet-Group-Stock-Price-Quotes-and-Forecasts-NYSE-CRCL-Benzinga.png" alt="" class="wp-image-16532" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28181524/Screenshot-2025-07-28-at-14-15-03-Circle-Internet-Group-Stock-Price-Quotes-and-Forecasts-NYSE-CRCL-Benzinga.png 615w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/28181524/Screenshot-2025-07-28-at-14-15-03-Circle-Internet-Group-Stock-Price-Quotes-and-Forecasts-NYSE-CRCL-Benzinga-300x183.png 300w" sizes="(max-width: 615px) 100vw, 615px" /><figcaption class="wp-element-caption">Circle Internet Financial stock has taken a hit as market expects new stablecoin competitors. Benzinga chart.</figcaption></figure>



<h2 class="wp-block-heading">Regulation Means More Costs, Possibly Tying Up Newcomers</h2>



El Damaty said that the new depth of regulation could "freeze" innovation with stablecoins, making easier for "companies already big enough to cross that new regulatory moat."



The Senate Banking Committee highlighted these regulatory requirements for stablecoins in their<a href="https://www.banking.senate.gov/newsroom/majority/fact-sheet-the-genius-act-protects-consumers"> fact sheet:</a>



<ul class="wp-block-list">
<li>Diversification requirements for reserve assets.</li>



<li>Interest rate risk management standards.</li>



<li>Capital, liquidity, and risk management requirements.</li>



<li>Prohibiting riskier reserve assets like corporate debt or equities.</li>
</ul>



The main challenge for issuers will be grappling with rules on capital allocation, said Andrei Grachev, Managing Partner of Falcon Finance. Falcon is part of DWF Labs, a crypto market‑maker, venture investment firm, and token advisory founded in 2022 in Abu Dhabi. DWF launched a collateralized, yield‑bearing stablecoin protocol managed by Falcon (USDf) in April.



"Imagine building a stablecoin protocol only to face retroactive scrutiny based on shifting political winds," Grachev said. "Without a unified vision, challenges include fragmented compliance requirements that raise operational costs, deter cross-border collaboration, and stifle innovation in areas like on-chain lending. Investors might pull back from U.S.-centric projects, favoring jurisdictions with clearer paths, while businesses risk talent flight to less hostile environments," he said.



Trump noted that the GENIUS Act means stablecoin issuers active in the U.S. must be able to seize, freeze, or burn stablecoins "when legally required" and "must comply with lawful orders to do so."



This is raising some eyebrows. What if a user is on the wrong end of the law, or, as Grachev said, not adhering to the prevailing political behaviors preferred by Washington at the time. The market might like Trump now. But he is only president for three more years. What if the next president has a different interpretation of the law?



"This will be akin to the hesitation we&#8217;ve seen pre-GENIUS Act, where lack of clarity stalled pilots despite surging demand, ultimately hindering the industry's ability to move fast and build cool stuff."



The concern among the stablecoin market participants seems to be that regulators will also expect stablecoin issuers to be able to comply quickly with full auditing and verify reserves, delivered in near-real time, to maintain compliance. Non compliance threatens their chance to sell their stablecoin in the U.S.



Nate Holiday, CEO at Makeinfinite, formerly known as Space and Time Labs, thinks the auditing issue is a solvable problem.



"You can't do it using traditional auditing processes, but it's something that can be achieved very simply with Proof of SQL," he said. SQL for the non-tech investor stands for Structured Query Language. SQL is the standard programming language used to communicate with relational databases. Proof of SQL is Makeinfinite's wheelhouse.



"Proof of SQL uses zero-knowledge proofs to ensure that stablecoins can only be minted (created) when the issuer has sufficient reserves on hand in accordance with the rules laid out in the GENIUS Act," he said.&nbsp; "You can do this in seconds and without disclosing sensitive financial data. You can run a stablecoin business without getting bogged down in audits,&#8221; he said.



Earlier this month, Ripple (XRP) CEO Brad Garlinghouse said the stablecoin sector is poised for explosive growth. They launched the Ripple stablecoin (USDr) this year. He said on CNBC's Squawk Box that the market could grow from its current $250 billion capitalization to "as much as $2 trillion in a handful of years. We are very regulated. We have over 60 global licenses to participate in these markets. We feel the growth (in stablecoins) will serve us well as we continue to serve our institutional clients."



When Garlinghouse says Ripple has 60 licenses worldwide to offer their stablecoin, he&#8217;s referring primarily to money transmitter licenses, virtual asset service provider registrations, and other local equivalents. These licenses cost money in numerous ways, including paying for local, legal expertise.&nbsp;



The GENIUS Act may provide the clarity the crypto industry long sought—but clarity comes at a cost. As Ripple and other well-capitalized issuers scale up under a new regulatory regime, smaller startups may find the bar for participation higher than ever.



Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

Opinion

Startups

Web3 Leaders See GENIUS Act Stifling Startups

Soccer players who score an own goal (accidentally kicking the ball into their own goal, giving the other team a point) feel foolish about this egregious error.



It is made even worse when their own goal wins the match for their opponent.



Players who make this mistake frequently quickly become former soccer players.



Baseball players who consistently make errors that cost their team runs become baseball fans before too much time passes.



Quarterbacks who throw as many interceptions as they do touchdowns are looking for new jobs before long.



In most endeavors, avocations, and occupations, consistent failure usually sends the unfortunate aspirant off in search of new activities and endeavors.



Except in investing and trading. 



There, hope springs eternal. Everyone is sure they can make their fortune trading. The research clearly shows that they cannot. It also shows there's one simple secret to make options trading profitable.



<h2 class="wp-block-heading">Get the Strategies Powering This 20%+ Portfolio — Live Wednesday at 6 PM ET</h2>



Benzinga's "Perfect Stocks" Portfolio is up 20% YTD, and on Wednesday, you'll find out why. Join Tim Melvin, Anne-Marie Baiynd, and Ryan Faloona to uncover the exact setups driving results: trend trades with real earnings power, low-maintenance income plays, and undervalued stocks with global momentum. <a href="https://events2.benzinga.com/bz-pro-webinar-wed-july30-2025-registration/?utm_campaign=073025-webinar&amp;&amp;utm_adType=sponsorad&amp;utm_ad=RD072925/?el=ResearchDaily&amp;he=%7B%7Bemail%7D%7D&amp;adt_ei=%7B%7Bemail%7D%7D&amp;utm_medium=newsletter">Reserve your seat now</a>.



The Dunning-Kruger effect is on display in grand fashion among retail options traders.



Most retail traders fail.



Most retail investors lag the market badly.



We overtrade.



We are overconfident.



We chase yesterday&#8217;s news.



Every investor or trader you talk to, though, is having a big year every year. No one on Twitter (now X) is making less than 100% a year, if you believe what they say. In spite of this, somehow retail investors routinely underperform the markets, and 75% of all day traders and 90% of all option traders lose money.



We are impatient.



Almost every retail trader I have ever known sells winners too soon and holds losers in hopes that the stock will bounce their way.



We like to be part of a tribe. Social media sites devoted to trading encourage herd following, which ultimately ends up as the financial equivalent of a pyramid scheme.



Those with FOMO who chase the story are almost always at the bottom of the pile.



A recent study reviewed in Science Direct examined trading behavior on the popular trading herd site WallStreetBets.



The professors found that &#8220;WSB attention increases overall risk levels as investors trade riskier stocks and allocate larger portfolio shares to new positions. WSB attention significantly reduces holding period returns (HPRs). Positions created when WSB attention is at its highest realize −8.5% HPRs.&#8221;



It gets worse when we turn toward options.



The options markets are a very efficient system. These markets almost effortlessly transfer money from traders with dreams of glory to market makers and options sellers.



A study published this year examining trades at major US brokerages with a moderately sophisticated trading clientele found that the average retail options trade lost about $4.



The average One Day to Expiration trade lost almost 5%.



The average short options trade made 20%.



If you are tired of losing money trying to trade using the same techniques everyone else is using, read that last sentence about 100 times.



Maybe get a tattoo or have the words sewn into a nice sampler you can hang on the wall.



Most option sellers make money.



For us as retail investors, the most important part of selling options is to make sure you really like the stock on which you are selling puts and understand trade management when you sell covered calls.



It is not an income strategy.



Selling options on minimum exchange margins without first evaluating the stocks is eventually going to end poorly.



Love the stock—sell the put to buy it cheaper.



Ready to part ways or just want to collect premium along the way? Sell the calls.



It is a total return strategy. You are using it to add to the returns of your stock portfolio.



You may recall from <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/07/46531827/how-i-built-a-portfolio-that-outperforms-in-every-market">last week&#8217;s letter</a> that my work (and that of most serious students of the market, who all have found some version of the same) shows that deep value strategies and owning companies with strong fundamentals momentum that attract buying pressure are the two best ways to build wealth over time.



Now add options selling strategies to enhance the return, and things begin to get impressive.



I usually skip being promotional in this weekly epistle, but <a href="https://www.benzinga.com/premium/ideas/trade-alerts-accelerator-bundle/?utm_campaign=save500&amp;utm_adType=sponsorad&amp;utm_ad=RD072925">take a look</a> at what Anne-Marie Baiynd and I are doing at Trade Alerts Accelerator at Benzinga Research.



I deploy stock strategies, and she brings options strategies that allow us to <a href="https://www.benzinga.com/premium/ideas/trade-alerts-accelerator-bundle/?utm_campaign=save500&amp;utm_adType=sponsorad&amp;utm_ad=RD072925">collect premiums and build the total return</a> on these already high-performing strategies.



Those in search of the biggest possible bang for the buck can add a little leverage and use partial margin to boost returns.



Partial margin.



Adding leverage only after significant down moves in the market gives you a favorable risk-reward proposition.



Deep value, momentum, selling premium, and smart leverage should put you into a position to earn returns that most so-called traders will never even come close to achieving.



The further out on the X-axis you go, the more the odds shift in your favor, and this strategy moves you way to the right.



Best of all, the only expiration dates are for options you sold, so time is your friend instead.



Some of you are going to insist that you are among the anointed and want to trade your way to fame and fortune.



Some of you just want some action and find stock and options trading more socially acceptable and interesting than the casino or the track.



In that case, pick a strategy and a time frame.



Stop looking for magic answers.



Stop focusing on how much you might make.



To be a profitable trader, you have to excel at risk control.



Choose momentum or reversion.



Have rules and stick to them. Be ruthless about closing trades that do not go your way.



I have seen some very interesting work done recently with five-day moving averages, opening range breakouts, and standard deviation-based reversion systems.



If you must trade, those are probably rabbit holes worth jumping into.



All in all, odds are you will be better off with deep value, momentum, and premium collecting.



Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Image: Shutterstock

The Secret To Profitable Trading That No One Wants To Hear

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) currently trades with a valuation of just over $1 trillion. CEO Elon Musk is beyond optimistic, doubling down on past comments that the stock will reach a<a href="https://www.benzinga.com/news/24/06/39327644/tesla-ceo-elon-musk-eyes-25-trillion-market-cap-with-optimus-bot-admits-to-being-pathologically-opti" target="_blank" rel="noopener"> $25 trillion market capitalization,</a> now revising the range to $20 trillion to $30 trillion.



What Happened: Musk believes that the future of Tesla's growth will come mainly from autonomous vehicles and the <a href="https://www.benzinga.com/markets/tech/25/07/46662067/elon-musks-30-trillion-bombast-may-come-back-to-haunt-tesla-bulls">Optimus humanoid robot</a>.



Those two items together could take Tesla stock "to crazy levels," Musk said while speaking virtually at the X Takeover event hosted by Tesla Owners Silicon Valley recently.



Musk said that some people believe Tesla can reach a $25 trillion market capitalization in the future.



"I think that's probably correct if we execute well on autonomous transport and Optimus," Musk <a href="https://x.com/teslaownersSV/status/1949684932491849832">said</a>.



Musk highlighted the large opportunity for robotaxis and robots, saying that these could help Tesla reach a huge market capitalization.



"It does actually get to a $20 trillion to $30 trillion valuation."



This is not the first time Musk has placed a market cap goal of more than $20 trillion on the electric vehicle company. In June 2024, he said Optimus could help Tesla hit a $25 trillion market capitalization in the future.



Perhaps helping Tesla in the future will be robotaxi fleets across the country.



"Some of the fleet will be Tesla-owned and some will be customer-owned," Musk <a href="https://x.com/teslaownersSV/status/1949715181040455985">told </a>the audience when asked about Cybercabs.



Musk said the robotaxi fleets will be like a combination of Uber and Airbnb with some people owning the cars to add to the fleet and some owned by Tesla directly.



The Tesla CEO <a href="https://x.com/teslaownersSV/status/1949684495994749428">said </a>Optimus could be life-changing for a lot of people.



"Optimus could be like a 24-hour day nurse or helper to someone who's paraplegic or needs physical help."



Musk said Optimus could also be used in situations where the work is dangerous or there are a lot of repetitive tasks.



Are you buying when the CEOs of the Magnificent 7 are selling?



<ul class="wp-block-list">
<li>Stay in the know with our Insider Trades page — <a href="https://www.benzinga.com/sec/insider-trades/">see when leaders like Mark Zuckerberg, Elon Musk, and Jensen Huang are offloading their own shares.</a></li>
</ul>



Why It's Important: While Tesla has attracted a large fan base and numerous investors, hearing a market capitalization of more than $20 trillion likely sounds crazy today.



For context, the 10 most valuable companies in the world today are worth a combined $23.2 trillion.



The highest Tesla has ever hit was around $1.25 trillion.



In an era where markets assign massive valuations to companies based on future potential rather than fundamentals like earnings, revenue, or free cash flow, even Tesla hasn't inspired investors to place a bet that big—yet.



To be fair, Musk has not said when he believes Tesla will hit $20 trillion to $30 trillion, just that it will.



NVIDIA is the most valuable company and the first to hit a $4 trillion market cap. It could take months or years for a company to reach $5 trillion. A recent <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/07/46395825/nvidia-vs-microsoft-vs-apple-who-will-hit-5-trillion-market-cap-first-75-of-readers-pick-this-stock">poll of Benzinga </a>social media followers said Nvidia was most likely to hit $5 trillion first, ahead of Microsoft, Apple or another company like Tesla.



What's perhaps most interesting about Tesla having such a high market capitalization in the future is that it's only one of several companies run by Musk and could be his least desired for future growth.



Benzinga<a href="https://www.benzinga.com/general/space/25/05/45680115/tesla-the-best-elon-musk-company-84-say-no-these-3-rank-higher" target="_blank" rel="noopener"> recently polled readers</a> to see which Musk company they would invest in, given the opportunity, among all of the ventures.



&#8220;If all of the Musk-related companies were currently public at recent valuation, which would you most want to invest in?&#8221; Benzinga asked.



The results were:



<ul class="wp-block-list">
<li>Starlink: 27%</li>



<li>SpaceX&nbsp;(with minority ownership of&nbsp;Starlink): 27%</li>



<li>X and xAI: 19%</li>



<li>Tesla: 16%</li>



<li>Neuralink: 8%</li>



<li>The Boring Company:&nbsp;4%</li>
</ul>



The poll results indicate a strong interest from investors in gaining access to SpaceX and Starlink. The combination of X and xAI ranked third with 19%. Musk suggested that the company could go public again in the future at the time of his $44 billion buyout of X, which was then known as Twitter, back in 2022.



While Neuralink and The Boring Company ranked fifth and sixth, the overall results show that Tesla is far from the most popular investment option. Only 16% picked Tesla as their top Musk investment, meaning 84% of those polled picked another company.



If someone told you today that a company would grow from a $1 trillion to a $30 trillion valuation, it might sound like a once-in-a-generation buying opportunity. But so far, investors aren't fully buying into Musk's promises.



While Musk has proven investors wrong before, $30 trillion is a lofty goal, and currently, investors would rather invest in other companies, including some of the ones run by Musk.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/entertainment/25/07/46620076/elon-musk-biopic-who-should-play-tesla-ceo-grok-picks-these-6-actors">Elon Musk Biopic: Who Should Play Tesla CEO? Grok Picks These 6 Actors</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Management

Tesla Worth $30 Trillion? Elon Musk Says Yes But Investors Say No

Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is gearing up for a significant rebound in the second half of fiscal 2025, driven by the highly anticipated launch of new product cycles, including a &#8216;slim&#8217; iPhone, and sustained momentum in its lucrative Services division, even as it contends with rising tariff costs and ongoing regulatory challenges.



On Monday, Bank of America Securities analyst Wamsi Mohan <a target="_blank" href="https://www.benzinga.com/quote/AAPL/analyst-ratings" rel="noreferrer noopener">reaffirmed a Buy rating</a> on Apple, maintaining a price forecast of $235.



As Apple prepares to release its fiscal third-quarter earnings on July 31, investor sentiment, as noted by Mohan, remains somewhat subdued.



Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46636565/apple-faces-existential-threat-if-it-fails-to-act-on-genai" rel="noreferrer noopener">Apple Faces Existential Threat If It Fails To Act On GenAI</a>



Key concerns include escalating tariff-related costs, scrutiny from the Department of Justice regarding Google&#8217;s traffic acquisition cost (TAC) payments, ongoing headwinds for the App Store, and the perceived slow pace of Apple&#8217;s advancements in artificial intelligence.



Nevertheless, the impending earnings call is expected to shift focus towards gross margin trends and the projected recovery trajectory fueled by forthcoming product launches.



For fiscal third-quarter 2025, Mohan projects revenue of $90.2 billion and earnings per share (EPS) of $1.45, figures that slightly surpass consensus Street estimates of $89.3 billion and $1.43, respectively.



The analyst anticipates a gross margin of approximately 46.1%, aligning with Apple&#8217;s guidance midpoint, despite the absorption of an estimated $900 million in tariff-related costs.



Looking ahead to the fourth quarter, projections indicate revenue of $99.5 billion and EPS of $1.66, largely in line with Street expectations.



While gross margin is projected to dip to 45% due to an additional $1 billion in tariff impact, Mohan views this quarter as a trough, with margins expected to improve heading into fiscal 2026.



Mohan noted that a key driver of this expected rebound is the highly anticipated &#8220;slim&#8221; iPhone, potentially branded as the iPhone &#8220;Air,&#8221; which Apple is likely to launch in fall 2025.



The analyst said that this model, expected to replace last year&#8217;s Plus version, will reportedly have a 6.6-inch display, measure just 6mm thick, and carry a price tag $100 higher than the Plus.



He noted that the shift in product mix toward higher average selling prices (ASP) is anticipated to drive gross margin expansion and boost replacement rates. Mohan modeled stronger iPhone sales in the September and December quarters on the back of this launch.



On the Mac front, Apple is expected to benefit from the March launch of the new MacBook Air featuring the M4 chip, which provides improved performance at a reduced entry price of $999, or $100 lower than its predecessor, the analyst noted.



He said this is expected to drive better-than-seasonal Mac revenue in the June and December quarters. Similarly, Mohan said the iPad segment could receive a boost from the expected fall launch of iPad Pro models equipped with the M5 chip. The analyst anticipates revenue growth in iPads driven by higher ASPs and product upgrades.



Apple&#8217;s Services segment continues to show steady growth, Mohan noted. For the third quarter, he expects Services revenue of $27.1 billion, up 2% quarter-over-quarter and 12% year-over-year.



Substantial year-over-year gains are projected across the App Store (+12%), Licensing (+18%), Subscriptions (+9%), and Apple Pay (+18%), as per the analyst.



For the fourth quarter, Services are projected to rise another 3% sequentially to $28 billion, again marking a 12% annual increase, with Licensing and Apple Pay both expected to grow over 20% year-over-year, Mohan noted.



Mohan slightly raised estimates for the full fiscal year 2025. Revenue is now forecast at $409 billion (up from $408 billion), and EPS at $7.15 (up from $7.13). The price forecast remains $235, based on a 29x multiple of fiscal 2026 estimated EPS of $8.20.



While Apple faces near-term margin pressure and regulatory noise, Mohan noted upside potential in new product cycles, improving Services momentum, and ASP-driven gross margin recovery, positioning the stock for renewed strength in the back half of the year.



AAPL&nbsp;Price Action:&nbsp;Apple stock is trading higher by 0.10% to $214.06 at last check on Monday.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/tech/25/07/46656199/pony-ai-gets-green-light-for-driverless-robotaxis-in-shanghais-pudong" target="_blank" rel="noreferrer noopener">Pony.ai Gets Green Light For Driverless Robotaxis In Shanghai&#8217;s Pudong</a></li>
</ul>



Image via Shutterstock

Price Target

Reiteration

Can Apple's Slim iPhone And Cheaper Macs Reverse The 2025 Stock Slump?

Peter Schiff didn't mince words after President Donald Trump's <a href="https://www.benzinga.com/news/politics/25/07/46650830/donald-trump-announces-15-tariff-trade-agreement-with-eu-ending-months-of-trade-uncertainty">new trade agreement</a> with the European Union. 



The deal is at odds with Trump&#8217;s &#8220;America First&#8221; narrative, the economist and gold advocate argued on social media. That&#8217;s because industrial America will pay the price—literally.



What Happened: In a fiery post on X, Schiff wrote: "We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper…"



His verdict? "Americans lose again."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump has a trade deal with the EU, where Americans lose again. We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper, driving up material costs for many U.S industries. Europeans won&#39;t pay any tariffs on most U.S. imports.&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1949590339322605685?ref_src=twsrc%5Etfw">July 27, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Schiff is often critical of Trump&#8217;s policies. His latest post echoes his sentiments from April, on the heels of Trump&#8217;s so-called &#8220;Liberation Day.&#8221; 



&#8220;By putting America first, Trump has put America last when it comes to investment returns,&#8221; Schiff <a href="https://x.com/PeterSchiff/status/1911045936467386686">said</a> on X. &#8220;America&#8217;s consumer-driven economy will fall apart.&#8221;



Why It Matters: Schiff warned that the sharply higher tariffs on essential metals will raise costs for American manufacturers across sectors—from construction and cars to defense and energy. 



With European steel, aluminum, and copper now slapped with a 50% tariff, U.S. industries dependent on those imports could see thinner margins and less competitive pricing globally.



<a href="https://www.benzinga.com/government/regulations/25/05/45260021/economist-justin-wolfers-says-tariffs-wont-lead-to-shortages-but-explains-why-it-might-cause-a-recession">Economists</a> and <a href="https://www.benzinga.com/25/04/44754457/amazon-ceo-andy-jassy-says-trump-tariff-costs-could-hit-consumers-as-sellers-pass-them-on-company-working-to-limit-price-hikes-amid-1771-ytd-stock-drop">CEOs predict</a> these companies will likely pass some or all of the extra cost on to customers.



Read Also: <a href="https://www.benzinga.com/markets/commodities/25/07/46579748/trump-copper-tariff-rally-record-highs-freeport2025">Trump Shock Treatment Ignites Copper Boom—And It&#8217;s Only Getting Started</a>



Observers also argue that tariffs could deliver gains for certain U.S. metal producers. Domestic buyers may pivot away from now-costlier European suppliers, thus boosting the stocks of Alcoa Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), Nucor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>), and Freeport-McMoRan Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>).



If material costs rise broadly, American miners and smelters could command better prices and improved volumes.



Still, Schiff remains skeptical. While certain U.S. stocks may catch a tailwind, the economist insists the macro impact could be inflationary and productivity-draining.



According to Schiff, Trump's EU deal trades campaign optics for long-term economic pain—and investors would be wise to read between the tariffs.



Price Action: The Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) is up about 10% year-to-date, as can be seen <a href="https://www.benzinga.com/quote/XLB">here</a>.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/07/46613806/freeport-mcmoran-eyes-major-gains-from-us-copper-tariff">Freeport-McMoRan Eyes Major Gains From US Copper Tariff</a></li>
</ul>



Image: Shutterstock

Politics

Peter Schiff Blasts Trump's EU Deal: 'Americans Lose Again'

Goldman Sachs is doubling down on its dovish rate path forecast, saying the Federal Reserve is poised to deliver five interest rate cuts through the end of next year—three in 2025 and two more in 2026—a significantly more aggressive easing cycle than markets <a href="https://www.benzinga.com/news/econ-s">are currently pricing in.</a>



<ul class="wp-block-list">
<li>SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) ETF has rallied 26% year-to-date. <a href="https://www.benzinga.com/quote/GLD">See real-time price here. </a></li>
</ul>



In a report published Monday, Goldman economist David Mericle said he expects no change at this Wednesday's FOMC meeting but reaffirmed the bank's base case: 25-basis-point cuts in September, October and December, followed by two more in 2026, bringing the terminal Fed Funds rate down to 3–3.25%.



"The activity data have now begun to show clearer support for forecasts of below-potential growth than they had at the time of prior FOMC meetings," Mericle wrote.



<h3 class="wp-block-heading">What's Driving Goldman's Call?</h3>



The firm pointed to a deceleration in consumer spending, which it said slowed more than expected in the first half of 2025—even before the full impact of Donald Trump's tariff regime is felt. Investment softness, primarily in housing, and policy-related uncertainty are also contributing to the economic downshift.



Goldman believes the inflation battle is largely over, citing the rebalancing of the labor market and a return to pre-pandemic trendlines. 



The only upside risk? A temporary tariff-driven boost to core inflation, estimated at about 1 percentage point, which it sees as a one-time effect unlikely to alter long-term inflation expectations.



The firm echoed Fed Governor Christopher Waller's view that tariffs won't ignite a prolonged inflation wave.



"We expect the underlying inflation trend to continue converging to 2% this year," the note said.



<h3 class="wp-block-heading">Market Expectations Lag Behind</h3>



Despite Goldman's confidence, markets remain more cautious. 



Fed futures data from CME Group shows a 73% chance of just two rate cuts in 2025. 



Meanwhile, Kalshi's CFTC-regulated contracts assign the highest probability to two cuts (50bps) at 40%, with only 10% odds for the three-cut scenario Goldman forecasts for this year.



<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/KXRATECUTCOUNT-25DEC31?color_scheme=light&#038;widget_size=medium&#038;variant=a&#038;ids=KXRATECUTCOUNT-25DEC31-T2&#038;ids=KXRATECUTCOUNT-25DEC31-T1&#038;ids=KXRATECUTCOUNT-25DEC31-T0&#038;utm_campaign=benzinga_widget" width="488px" height="196px" style="border:0"></iframe>



<h3 class="wp-block-heading">What To Expect From Powell?</h3>



The Fed is widely expected to hold rates steady this week at the 5.25%–5.50% range. 



Goldman anticipates no strong forward guidance in the July statement or Powell's press conference. Instead, the tone will likely shift from describing growth as "solid" to "moderate" to reflect slower first-half expansion.



Mericle expects both Governor Bowman and Waller to likely dissent and vote for a 25-basis-point rate cut. 



While Powell may be asked whether the two cuts projected in the Fed's June dot plot remain the baseline, he's unlikely to commit—preferring to emphasize the "meeting-by-meeting" approach with two key inflation and jobs prints still due before September.



<h3 class="wp-block-heading">Bottom Line</h3>



Goldman Sachs sees the Fed cutting faster and deeper than Wall Street believes. 



If growth slows further and inflation stays tame—aside from a short-lived tariff bump—the market may be underestimating the pace of policy easing in the months ahead.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/large-cap/25/07/46641084/wall-street-stock-bubble-2025">Is A Stock Market Crash Imminent? Bubble Warnings Grow Louder </a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Macro Economic Events

Economics

Get Ready For Five Fed Cuts, Markets Got It All Wrong: Goldman Sachs

U.S. energy stocks have trailed behind the broader market this year. Still, President Donald Trump's $750 billion trade agreement with the European Union may be the catalyst <a href="https://www.benzinga.com/topic/energy-stocks">to reverse that underperformance</a>. 



<ul class="wp-block-list">
<li>CVX stock is up 8% in July. <a href="https://www.benzinga.com/quote/CVX">See the chart here.</a></li>
</ul>



While headlines fixated on the 15% tariff rate the U.S. will apply to European imports, a far more consequential detail went largely overlooked: the EU has agreed to purchase $750 billion worth of U.S. energy exports over the next three years, a sharp increase from the roughly $100 billion imported annually today.



<h3 class="wp-block-heading">Market Reaction: Energy Stocks Catch A Bid</h3>



The U.S. energy sector welcomed the move. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) climbed 1% on Monday, outperforming all other sectors. 



The agreement is being viewed as a potential structural shift in demand—one that could unlock long-term export growth, solidify pricing power, and revive capital flows into the sector.



Yet energy stocks still lag in 2025, with the XLE up just 1.9% year-to-date, compared to the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which has gained 8.9%.



Among notable Monday&#8217;s movers in oil &amp; gas stocks:



<ul class="wp-block-list">
<li>Devon Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>) up 3.14%</li>



<li>Diamondback Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) up 3.03%</li>



<li>APA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) up 2.64%</li>



<li>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>) up 2.54%</li>



<li>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) up 2.32%</li>



<li>Cheniere Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNG#NYSE">LNG</a>), a major LNG exporter, jumped 3.3%</li>
</ul>



<h3 class="wp-block-heading">Bold Target, But Risks Remain</h3>



Oxford Economics' Oliver Rakau called the agreement a "clear political win for the U.S.," citing no signs of EU retaliation and a favorable tariff structure. Still, he flagged "significant implementation risks," related to the energy pledge, noting the target may prove too ambitious.



"The $750 billion pledge over three years is highly ambitious given current levels are under $100 billion," Rakau said.



Florence Schmit, energy strategist at Rabobank, echoed the skepticism.



"To hit $250 billion annually, the EU would need to import 67% of its energy needs from the U.S.," he said, citing Eurostat data.



Instead, she expects the deal will trigger European investment in U.S. LNG infrastructure, securing future supply but having a limited short-term impact on global balances.



According to Oilprice.com, the deal aims to replace sanctioned Russian gas volumes with U.S. LNG through a combination of spot and long-term contracts. Although no specific contracts were announced, follow-on agreements are expected to be announced in the coming weeks.



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