Day: July 21, 2025

Mexican Peso Rises at the Start of the Week Amid Dollar Weakness

Posted on by Ignacio Teson

The Mexican peso appreciated against the U.S. dollar on Monday, supported by a weaker greenback as markets remained focused on developments in U.S. trade negotiations just days before new tariffs are set to take effect.

The exchange rate closed the session at 18.6617 pesos per dollar. Compared to Friday’s official closing level of 18.7312, the peso gained 6.95 centavos, or 0.37%.

The dollar traded in a range between a high of 18.7375 and a low of 18.6251 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, dropped 0.60% to 97.87.

[[USD/MXN-graph]]

Countdown to U.S. Tariffs

U.S. Treasury Secretary Scott Bessent stated Monday that the Trump administration prioritizes the quality of trade agreements over strict timelines, ahead of the August 1 deadline for implementing new tariffs on multiple countries.

Commerce Secretary Howard Lutnick said the August 1 date is a “firm deadline” for countries to begin paying tariffs, though he clarified that nothing prevents further proposals after the measures take effect.

The dollar’s decline was broadly felt, with many emerging-market currencies benefiting. The European Union is reportedly preparing a contingency plan in case negotiations break down, while Bessent told reporters that talks with China are “on the right track.”

Investors continue to assess whether the tariff threats from the Trump administration are simply a negotiation tactic ahead of the potential implementation on Friday, August 1.

Busy Week for Local Economic Data

Domestically, traders are bracing for a week of key economic indicators. On Tuesday, Mexico’s Global Economic Activity Index (IGAE) for May will be released, followed by the National Consumer Price Index (INPC) for the first half of July on Thursday.

U.S. Treasury Secretary Calls for Review of Fed’s Performance

Posted on by Ignacio Teson

U.S. Treasury Secretary Scott Bessent said on Monday that the Federal Reserve and its Board of Governors should be reviewed, citing several recent policy missteps and an excessive reaction to tariff threats that have not materially affected inflation.

In an interview with CNBC, Bessent stated that removing Fed Chair Jerome Powell would ultimately be President Donald Trump’s decision, but emphasized that the central bank’s recent actions warrant serious examination.

“I think what we need to do is look at the entire institution of the Federal Reserve and ask whether it has succeeded,” Bessent said. He is expected to deliver opening remarks at the Fed’s headquarters Monday evening during the kickoff of a regulatory policy conference.

Drawing a sharp analogy, he added:

“If we were at the FAA and made this many mistakes, we’d go back and review what went wrong. All those PhDs at the Fed—I don’t know what they’re doing.”

Fed Under Fire for Overspending and Rate Inaction

The remarks come amid escalating tensions between the Trump administration and the Fed. Over recent months, President Trump has repeatedly lashed out at Powell, urging him to resign over his reluctance to cut interest rates, which remain in the 4.25%–4.50% range. Trump has also criticized a $2.5 billion renovation of the Fed’s Washington headquarters, alleging potential fraud due to budget overruns.

Powell defended the renovation last week, responding to inquiries from Trump officials. He noted that the project includes extensive security upgrades and the removal of hazardous materials.

Bessent, for his part, declined to comment on warnings that Powell’s removal could trigger a significant sell-off in U.S. financial markets.

Upcoming Fed Meeting in Focus

The Federal Open Market Committee (FOMC) will hold its next two-day policy meeting on July 29–30. So far in 2025, the Fed has opted to keep rates steady amid mixed inflation signals and political pressure.

Although Powell’s term as Fed Chair ends in May 2026, he remains a Board Governor until January 2028. Market participants remain divided over whether the Fed will begin to cut rates this year, despite Trump’s public demands. However, many economists are still forecasting at least two rate cuts before year-end.

Follow the Trend: New Records for S&P 500 and NASDAQ Composite on Tech Optimism

Posted on by Skerdian Meta

Despite some weakness in the Dow and small caps, Monday’s US trading session was once again dominated by tech-led strength, with the NASDAQ pushing further into record territory.

Tech Momentum Lifts NASDAQ and S&P to Intraday Highs

US equity markets displayed resilience to start the week, with modest gains in the NASDAQ and S&P 500 offsetting minor declines in the [[Dow]] Jones and Russell 2000. Investor sentiment remained upbeat ahead of a heavy slate of earnings reports and key macroeconomic data due later in the week.

Both the NASDAQ Composite and the S&P 500 notched fresh all-time intraday highs during Monday’s session. The S&P 500 peaked at 6,336.08 before settling slightly lower at 6,305.60, still marking a positive close. The NASDAQ climbed to 21,077.37, before pulling back modestly to finish at 20,974.17, up 0.30% for the day. Despite that rotation lower, the upward trend remains intact.

NASDAQ Rally: Technically Very Strong

Technically, the NASDAQ remains well-positioned within a strong uptrend. Recent price action has shown consistent gains, punctuated by short-lived corrections toward key Fibonacci levels. The breakout to new highs on Monday continues to validate the broader bullish trend.

Even though the index is technically overbought on shorter timeframes, momentum remains firmly with the bulls. The 50-hour and 100-hour moving averages are acting as dynamic support zones. A break below these levels could signal the early stages of a deeper correction—but until then, the trend remains your friend.

Small-Cap Divergence and Market Breadth Caution

One notable divergence continues: small-cap stocks. The Russell 2000 fell by 0.40%, highlighting that market breadth remains uneven. While large-cap tech names keep powering the broader market forward, other sectors and capitalization tiers are struggling to participate fully in the rally.

Still, for now, the strength in the NASDAQ and S&P is dominating the market narrative.

US Stock Market Closing Summary — July 21, 2025

Dow Jones Industrial Average

▸ Ended the session slightly lower, shedding 19.12 points or -0.04%

▸ Final closing level: 44,323.07

▸ The blue-chip index continues to hover near recent highs but showed signs of consolidation as investors await earnings data from key industrial and consumer names.

S&P 500 Index

▸ Rose 8.81 points, a +0.14% gain on the day

▸ Final level: 6,305.60, nearing fresh all-time highs

▸ Gains were fueled by strength in large-cap tech and defensive healthcare names, indicating a cautious yet upward bias in broader markets.

NASDAQ Composite Index

▸ Led the large-cap gains with an increase of 78.52 points or +0.30%

▸ Closed at 20,974.17, reflecting continued momentum in high-growth technology and AI-related sectors

▸ The index benefited from strong sentiment toward mega-cap names and optimism about AI infrastructure earnings this week.

Russell 2000 (Small-Cap Index)

▸ Underperformed the major averages, falling 8.87 points or -0.40%

▸ Closed at 2,231.13

▸ Weakness in financials and industrials dragged on the small-cap index, which has struggled to keep pace with large-cap growth stocks amid macro uncertainty and rate sensitivity.

Conclusion: Follow the Trend, Watch the Supports

In classic bull market fashion, big tech continues to do the heavy lifting, helping the NASDAQ and S&P hit fresh records. As long as technical support zones hold, the uptrend remains intact—even amid minor dips. Until we see significant breaks below moving averages or a shift in earnings sentiment, the bulls remain firmly in control.

Nasdaq Index Live Chart

[[nas100-graph]]

Sasol Share Price Surges 6% – JSE: SOL Buyers Hold on Oil Optimism, Russia Sanctions

Posted on by Skerdian Meta

After a brief pause at the end of June, Sasol’s powerful recovery resumes as oil market volatility and geopolitical factors reignite investor demand. Continue reading “Sasol Share Price Surges 6% – JSE: SOL Buyers Hold on Oil Optimism, Russia Sanctions” →

QS Stock Falls 15% After 350% Rally as Investor Skepticism, Profit-Taking Hit QuantumScape

Posted on by Skerdian Meta

QuantumScape’s blistering rally lost steam today as the stock plunged 15%—but its recent surge signals growing investor faith in the future of solid-state EV battery tech. Continue reading “QS Stock Falls 15% After 350% Rally as Investor Skepticism, Profit-Taking Hit QuantumScape” →

Bank of America Rules Out U.S. Recession, Expects No Fed Rate Cuts in 2025

Posted on by Ignacio Teson

In a recent report, Bank of America (BofA) stated that the U.S. economy remains resilient, supported by strong consumer spending and persistent inflation in goods.

Bank of America

As a result, the bank does not expect the Federal Reserve to cut interest rates for the remainder of the year. It also warned of the dangers of monetary policy decisions influenced by the political climate.

BofA now projects that the U.S. will avoid a recession in 2025, and that the Fed will keep interest rates steady throughout the year, despite ongoing political and financial uncertainty linked to the presidential election cycle.

“The latest data reinforce our view that the U.S. economy will avoid a recession and the Fed will not cut rates this year,” analysts said in a note published Monday.

Persistent Inflation and Strong Spending

The bank highlighted that consumer spending remains robust and that goods-related inflation continues to be sticky. According to the report, the retail control group—a key input for GDP calculations—rose 0.5% month-on-month in June, while the food services category increased 0.6%.

[[SPX-graph]]

Political Pressure and Inflation Risks

BofA also cautioned against monetary decisions influenced by political considerations. “Cutting rates to help fund the government deficit is probably one of the worst reasons to do so,” the analysts wrote, in reference to recent criticism of Fed Chair Jerome Powell by President Donald Trump.

“This kind of political noise unnecessarily raises the bar for rate cuts,” the report stated. Premature easing, it warned, could unanchor inflation expectations, weaken the dollar, increase credit risk, and steepen the yield curve.

Outlook for the Coming Weeks

Looking ahead, BofA expects a modest increase in jobless claims for the week ending July 19 and anticipates stable housing market data. However, it forecasts a sharp 11% monthly decline in durable goods orders, with the report set to be released this Friday.

Cryptocurrencies Surge After Passage of Key U.S. Legislation; Bitcoin Nears Record High

Posted on by Ignacio Teson

Bitcoin began the week on a positive note, posting a mild 0.3% gain over the past 24 hours, consolidating after a brief pullback that followed its all-time high reached on July 14.

Meanwhile, Ethereum (ETH) and leading altcoins extended their rallies, with some notching weekly gains of nearly 25%.

As of Monday morning, BTC trades at approximately $118,935, according to Binance. Ethereum rose 2.4% to $3,819, marking its highest level since mid-December 2024 and up 24.9% for the week.

[[BTC/USD-graph]]

Institutional Flows Favor Ethereum

Ethereum continues to attract institutional capital, largely driven by the BlackRock ETH ETF, which has seen consistent inflows. Analysts note a marked accumulation trend and growing confidence in ETH, particularly as stablecoin adoption rises—likely fueling demand for Ethereum’s network.

Altcoins also joined the rally:

  • Ripple (XRP): +2.8% to $3.59 (+19.5% weekly)
  • BNB: +4.1% daily to $775.90
  • Solana (SOL): +6.0% daily and +14.8% for the week

Regulatory Breakthroughs in the U.S.

Last week, the U.S. Congress passed the GENIUS Act, becoming the first comprehensive legislation regulating stablecoins. Two additional bills—CLARITY and the Anti-CBDC Surveillance Act—are also on the horizon, both seen as pivotal for future crypto valuations.

The CLARITY Act aims to define legal frameworks for digital commodities, DeFi protocols, and token classification.

The Anti-CBDC Act seeks to block the Federal Reserve from issuing a central bank digital currency (CBDC), citing concerns over privacy and surveillance.

Trump Administration Backs Crypto Expansion

In his second term, President Donald Trump has emerged as an outspoken advocate for Bitcoin. Reports indicate he is preparing an executive order that would allow $9 billion from U.S. retirement savings to be invested in alternative assets, including crypto, gold, and private equity.

In addition, corporate giants like Walmart and Amazon are reportedly exploring the issuance of their own stablecoins, aiming to lower transaction costs and improve payment efficiency.
Outlook: A Defining Moment for Crypto?

Market strategists call this a potential “watershed moment” for the crypto industry. With growing institutional support, regulatory clarity on the horizon, and positive legislative momentum, investor confidence appears to be rebounding.

The alignment of legislative, institutional, and retail support suggests we could be entering a new era of mainstream crypto adoption.

How Has Trump’s Cryptocurrency Bill Affected the Market?

Posted on by Timothy St. John

On Thursday, the GENIUS Act was approved by the House of Representatives, and on Friday, Trump signed the bill into law, and the cryptocurrency market has been absolutely wild since then.

The GENIUS Act is designed to make stablecoins easier to access.
The GENIUS Act is designed to make stablecoins easier to access.

The GENIUS Act makes stablecoins easier to access and more widely available, and Trump’s approval of that act has caused cryptocurrency prices to skyrocket. The value of Bitcoin (BTC) has probably changed the least compared to other coins, but Ethereum (ETH), Solana (SOL), and XRP (XRP) have all seen more than 20% increases since Friday.

[[BTC/USD]]

Crypto values have not seen this kind of dramatic surge since Trump was elected to the office of the presidency. Now that he has made good on several of his crypto campaign promises, investors are excited about what will come next. There is tremendous potential behind this seemingly simple government Act.

How GENIUS Changes Cryptocurrency

What this Act does for stablecoins is open them up to the public and make investors feel safer about using them. That will have a knockdown effect on the entire industry, and investors realize that.

Once stablecoins become easier to use cryptocurrency will be more widely used and should become more commonplace. Many people currently use stablecoins as a stepping stone to other cryptocurrencies, buying the stablecoins and holding them until they are ready to buy other types of digital coins.

That is because stablecoins tend to hold their value, as they are tied to another currency, usually fiat currency like the U.S. dollar. Several coins are tied to the dollar at this moment, including USD Coin (USDC) and Tether (USDT). The GENIUS Act makes it even easier for investors to do this, ensuring that the path between fiat currency and a digital coin like Bitcoin is less convoluted and more accessible.

There is concern that the bill will help the Trump family’s own stablecoin and that the reason this type of crypto bill was passed was to do just that. Trump and his family own a 60% stake in World Liberty Financial, the parent company behind the USD1 stablecoin.