Market Wrap | U.S. Treasury Yields Drop Amid Tariff Fears as Stocks Fluctuate

On July 21, 2025, U.S. Treasury yields continued to decline, with the 10-year yield dropping to 4.35%, below the 200-day moving average, driven by increased demand for safe-haven assets due to the impending high U.S. tariff deadline. Meanwhile, June CPI rose 2.7% year-over-year, slightly above expectations, indicating mild inflation pressure amid tariff impacts. In the stock market, the S&P 500 index rose 0.14%, the Dow Jones Industrial Average fell 0.04%, and the Nasdaq Composite index gained 0.38%.

Based on the current market performance, several sectors outperformed the S&P 500, including utilities, technology, discretionary consumer goods, communication services, materials, and real estate. Notably, the communication services sector showed exceptional performance. Conversely, sectors such as healthcare, staples consumer goods, energy, industrials, and financials moved in the opposite direction of the S&P 500.

In a volatile trading session, several companies saw significant movements in their stock prices. reAlpha Tech Corp. surged over 347%, bolstered by the closing of a $2 million public offering aimed at strengthening its financial position. ProMIS Neurosciences rose nearly 155% after the FDA granted Fast Track designation for its Alzheimer's drug PMN310. Meanwhile, Erayak Power plummeted over 94%, facing supply chain disruptions that have impacted its production capacity. Garden Stage Ltd. also saw a dramatic drop, losing over 87% to settle at 0.22.

Apple is expected to exceed Wall Street expectations for its third-quarter performance, indicating strong earnings potential. Meanwhile, US Treasury yields continue to decline, with the 10-year yield dropping to 4.35%, below the 200-day moving average, driven by increased demand for safe-haven assets due to impending high US tariffs and ongoing trade negotiations with the EU. The S&P 500 and Nasdaq have both reached record highs, showing gains of 0.38% and 0.67%, respectively. Additionally, Microsoft has issued security updates to address attacks on its enterprise server software, urging customers to apply these updates promptly.