What Moved The Markets This Week

Trump Hikes Tariffs on Allies, Prime Day Sales Jump 10%, Perplexity Unveils Search Browser, xAI Rolls Out Grok 4, Pentagon Backs Rare Earths Supplier, and DAL Earnings.

Jul 13, 2025

Sunday Morning Markets

Trading Week 28, covering Monday, Jul 7 through Friday, Jul 11. Your weekly financial markets update, in less than 5 minutes.

The Week In Review ⏪

Trump Tariffs: 35% on Canada, 30% on EU/Mexico, 40% on others.
Budget Surplus: Treasury posts $27B surplus on higher tariff revenue.
Fed Minutes: July rate cut unlikely, officials await clearer inflation data.
Rare Earths: Pentagon invests $400M in MP to boost domestic supply.
Prime Day: Sales jump 10% to $7.9B in event’s first 24 hours.
UK Contraction: GDP dips again, boosting rate cut chances.
Ukraine Aid: U.S. resumes arms shipments amid Russian strikes.
Perplexity Browser: AI-powered ‘Comet’ debuts with smart search.
Grok 4 Launch: xAI unveils elite $300/mo AI model for top users.

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US Markets 🇺🇸

Fed minutes show little backing for July cut as most officials await clearer inflation data. A broader consensus backs easing later in 2025, with CME seeing a 60% chance of a cut at the September meeting.
Treasury posts unexpected surplus in June as soaring tariff duties fuel a $27B gain, reversing May’s $316B deficit. Despite the bump, the YTD deficit sits at $1.34T and is on pace to hit $1.6T.
Trump to impose 50% tariff on copper imports but gives no timeline for when it takes effect, signaling more steep trade actions. Pharma imports could face 200% duties within 18 months.
Pentagon becomes top investor in MP Materials with a $400M deal that sends shares soaring 50%. The move secures rare earths vital for U.S. defense and reduces dependency on China.
Supreme Court clears Trump’s large-scale staff cuts at various federal agencies as legal battles continue in lower courts. Justice Jackson was the lone dissenter, warning of risks to democratic oversight.
Prime Day sales jump to $7.9 billion in first 24 hours, an increase of nearly 10% from last year, according to Adobe. The surge marks 2025’s biggest online shopping day so far, outpacing last year’s Black Friday.
Linda Yaccarino steps down as CEO of X after two turbulent years steering Elon Musk’s platform through ad woes and policy overhauls. Her exit follows backlash over Musk’s AI chatbot Grok.
Delta reinstates 2025 outlook as bookings stabilize after months of uncertainty, signaling renewed travel confidence. The airline now expects stronger summer demand and profit growth, pushing the stock up 11%.

Global Markets 🌏

Trump hits allies with steep new tariffs starting Aug. 1, with 35% on Canada and 30% on Mexico and the EU. Tariff rates on 14 other nations, including Japan and Korea, will rise up to 40%.
China's deflation problem worsens in June with producer prices plunging 3.6%, the sharpest drop in nearly two years. Officials warn that price wars and weak demand may prolong the downturn.
UK economy unexpectedly shrinks again in May as production and construction slump. The decline dims hopes for a rebound and boosts odds of a Bank of England rate cut in August.
Ukraine to receive more weapons from the U.S. as Russian strikes intensify and peace talks stall. Patriots, Stingers, and other arms will be rushed after Trump lifts the shipment pause.
Australia surprises by holding rates steady at 3.85%, defying market expectations of a cut. The RBA says it will wait for more inflation data before deciding on further rate moves.
India orders X to block 2,355 accounts, including Reuters in a sweeping move that reignites its censorship battle with Elon Musk’s platform. The accounts were later restored after pushback.
Starbucks China attracts bids up to $10B valuation as nearly 30 firms compete for a stake in the struggling unit. Starbucks plans to retain a meaningful share and select a strategic partner.

Tech ⚡

Perplexity launches Comet, an AI-powered web browser with built-in search and a smart assistant to rival Google. Users on the $199/mo Max plan and other select invitees have early access.
xAI rolls out Grok 4 alongside a $300/mo subscription boasting frontier-level performance. Grok 4 doubled the score of the next best commercial model, Claude Opus 4, on the ARC-AGI-2 test.
CoreWeave to acquire Core Scientific in $9B all-stock deal to secure 1.3GW of data center power and slash $10B in future lease costs. The move boosts AI capacity and long-term efficiency.
Apple’s top AI exec quits to join Meta and its elite Superintelligence Labs team in a multimillion-dollar move. Ruoming Pang's departure highlights Apple’s struggle to keep pace in the AI race.
Google hires Windsurf CEO in $2.4B AI power move after OpenAI's $3B acquisition talks collapsed. Google gains top talent and tech license, but Windsurf will stay independent.
Threads nears X (Twitter) in daily mobile users with 115M actives in June, closing in on X’s 132M as growth declines. Threads still lags on the web, but Meta’s ad push is gaining momentum.