Weekly Market Review: 14th July 2025

In the US, equity markets edged higher despite uncertainty surrounding future tariff policies. President Trump reaffirmed that reciprocal tariffs would take effect on 1 August, following the expiration of the current 90-day window last Wednesday. This was followed by the announcement of a 50% tariff on copper and a potential 200% tariff on pharmaceuticals within the next year. On Wednesday, Trump also announced 50% tariffs on Brazilian imports, significantly higher than the 10% initially imposed as part of the April 2nd measures. In corporate news, it was a historic week for US—and indeed global—markets, as NVIDIA became the first company to reach a market capitalisation of $4 trillion. This milestone reflects continued demand for its cutting-edge technologies that underpin advanced AI systems. Remarkably, NVIDIA reached this level before both Apple and Microsoft, despite only surpassing the $1 trillion mark in mid-2023, while both Apple and Microsoft passed this milestone in 2019. For context, NVIDIA’s market cap in 2019 stood at $144 billion. Elsewhere, Goldman Sachs and Bank of America became the latest US banks to raise their S&P 500 forecasts for 2025, following similar upgrades from JP Morgan, CitiGroup, and Barclays. Goldman now projects 12-month growth of 11%, while Bank of America forecasts 6%. These upgrades highlight the strength of the US equity market’s recent recovery. However, upcoming earnings season results will provide a key test. In M&A, Merck announced its acquisition of lung disease-focused biotech firm Verona Pharma in a deal valued at approximately $10 billion—its largest takeover in two years. Merck manufactures Keytruda, the world’s best-selling cancer treatment drug, with annual revenues of nearly $30 billion. For the week, the S&P 500 and NASDAQ closed higher, up 0.03% and 0.52% respectively.

In Europe, equity markets also rose, buoyed by optimism around a pending trade deal with the US. Europe’s trade chief, Mario Šefčovič, stated that significant progress had been made towards a framework agreement. The deal is expected to impose 10% tariffs on EU exports to the US, though sensitive sectors such as automobiles and semiconductors may face different rates. The EuroStoxx 50 reached its highest level since late March, while the STOXX 600 hit a one-month high. In corporate developments, Italian-owned food group Ferrero—maker of Ferrero Rocher and Kinder chocolates—is in talks to acquire WK Kellogg, the producer of household cereal brands such as Corn Flakes and Rice Krispies. The proposed $3 billion deal is double WK Kellogg’s current $1.5 billion market value. The company was spun off from parent group Kellanova last year after its acquisition by Mars Inc. for $36 billion. For the week, both the EuroStoxx 50 and STOXX 600 closed higher. For the week, the Eurostoxx 50 and STOXX600 closed higher, up 2.33% and 2.09% respectively.

In the UK, the FTSE 100 made notable gains last week, largely driven by the copper tariffs announced by President Trump, which boosted mining stocks such as Anglo American, Rio Tinto, and Glencore—each rising by more than 3%. In corporate news, London-based advertising giant WPP announced the appointment of Cindy Rose—currently Chief Operating Officer for Global Enterprise at Microsoft—as its new Chief Executive. Shares in WPP are at 16-year lows as the company faces increasing pressure from AI-driven tools disrupting traditional advertising methods. The FTSE 100 closed 2.06% higher for the week.