Markets Hold Steady as Trade Headlines Stir Sector Moves, Not Broad Direction

U.S. equities traded in a narrow range on Wednesday as investors digested a steady stream of trade-related headlines that stirred select sectors but did little to shift overall market direction. After yesterday’s consolidation, the major indices hovered near flat for most of the session, with a clear divergence between small- and mid-cap strength and mega-cap weakness.

President Trump signed an executive order formally postponing the July 9 trade deadline, but made it clear that no further extensions will be granted beyond August 1 for countries receiving tariff notices. Among those now on the clock are Japan, South Korea, and reportedly more nations expected to receive letters in the coming days.

Commerce Secretary Howard Lutnick, in a CNBC interview, noted that the EU has made “significant real offers” to expand market access for the U.S. Still, early reports suggest that Europe may soon receive a tariff letter as well.

Though broadly anticipated, these developments did trigger sector-specific reactions. The biggest impact came from the copper and energy markets:

• Copper futures surged 11.2% to $5.58/lb after Trump announced a 50% tariff on copper, effective August 1. That move sent Freeport-McMoRan (FCX) up 2.6%, helping the materials sector (+0.8%) finish among the day’s top performers.
• Energy stocks (+2.7%) led the market after Trump signed an executive order eliminating federal subsidies for wind and solar, part of the “One Big Beautiful Bill” agenda. Oil majors including ConocoPhillips (+3.4%), Chevron (+3.8%), and Exxon Mobil (+2.7%) rallied in response, aided by a 0.5% rise in WTI crude, which settled at $68.30 per barrel.

While the S&P 500 dipped 0.1% on the day, smaller names outshined. The Russell 2000 gained 0.7%, and the S&P MidCap 400 rose 0.5%, as rotation into value and cyclicals continued. Meanwhile, the Vanguard Mega Cap ETF slipped 0.15%, weighed down by softness in high-profile names like Apple (+0.0%) and Microsoft (-0.2%).

Market breadth remained healthy, with advancers topping decliners 2-to-1 on both the NYSE and Nasdaq, signaling a market not far from bullish conviction—just temporarily lacking fresh catalysts.

Tech stocks (+0.4%) saw modest gains, held back by Apple and Microsoft, but supported by a 1.8% rebound in semiconductors that nearly erased Tuesday’s drop. Chipmakers regained momentum following positive order flow and easing export concerns.

In contrast, financials (-0.9%) lagged after HSBC downgraded JPMorgan Chase (-3.2%), Bank of America (-3.1%), and Goldman Sachs (-2.0%), citing valuation concerns. The pressure on big banks contributed heavily to the sector’s underperformance.

Consumer discretionary (-0.6%) also struggled despite a 1.3% rebound in Tesla, which bounced back after a politically charged news cycle. However, weakness in Amazon (-1.9%) weighed heavily, as initial reports showed Prime Day sales down 14% from last year, denting sentiment in the retail space.

Our U.S. portfolio, FTInvest 11, delivered a strong rebound today, not only recovering yesterday’s losses but also mounting a fresh challenge on its all-time high. The index climbed above 797 intraday, coming within striking distance of setting a new record.

While it couldn’t quite hold that level through the close, FTinvest 11 still ended the session up 2.07%, finishing at 794.47—just 0.32% below its all-time high from December 2024.

The performance reflects renewed strength across key holdings and growing investor confidence, positioning the portfolio for a potential breakout in the sessions ahead.