Weekly Market Insights | This Week: T For Tariffs, T For Trillion

Stocks were slightly lower last week, while looking past news of fresh U.S. tariffs on nearly two dozen countries.

The Standard & Poor’s 500 Index fell 0.31 percent, while the Nasdaq Composite Index edged lower by 0.08 percent. The Dow Jones Industrial Average lost 1.02 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 0.43 percent.^1,2

The Return of the Tariffs

Stocks started the week lower after the White House posted letters to 14 countries announcing new tariffs, set to take effect August 1. They included 25 percent tariffs on South Korea and Japan.^3,4

Stocks dropped briefly midweek after the White House announced tariffs on seven additional countries. But as investors digested the news, markets gradually recovered, hoping the administration would dial back its steepest tariff rates again.

Markets also rallied on fresh AI trade enthusiasm and the latest Fed meeting minutes, which showed a majority of Committee members were open to adjusting interest rates later this year.^5,6

Markets opened higher on Thursday as investors shrugged off news of the 50 percent tariff on Brazil imports, announced shortly after Wednesday’s close. Momentum continued, and the S&P 500 and Nasdaq rose to fresh records.⁷

Then, after Thursday’s close, the White House announced the U.S. was raising tariffs on Canadian imports to 35 percent and was preparing some other tariffs. Markets opened lower on Friday and trended sideways during the trading session.⁸

The T Word

While tariffs drove market headlines last week, another “t word” made news: trillion.

More specifically, $4 trillion in market capitalization. The nation’s largest AI chip maker was the first company to breach that market cap level. It crossed the $4 trillion mark intraday on Wednesday, then closed above it for the first time on Thursday’s close.^9,10

So why does it matter when one stock hits such a milestone? For a market-cap weighted index like the S&P 500, a company valued at $4 trillion has an outsized effect on the overall index’s performance. The largest five companies in the S&P 500 comprise about one-third of the benchmark index.^9,10

This Week: Key Economic Data

Tuesday: Consumer Price Index (CPI). Industrial Production. Capacity Utilization. Boston Fed President Susan Collins and Dallas Fed President Lorie Logan speak.

Wednesday: Producer Price Index (PPI). Fed Beige Book.

Thursday: Jobless Claims (weekly). Retail Sales. Import Price Index. Business Inventories. Home Builder Confidence Index.

Friday: Housing Starts. Building Permits. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; July 11, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), BlackRock (BLK), Citigroup Inc. (C)

Wednesday: Johnson & Johnson (JNJ), Bank of America Corporation (BAC), Morgan Stanley (MS), The Goldman Sachs Group, Inc. (GS), The Progressive Corporation (PGR), Prologis, Inc. (PLD)

Thursday: Netflix, Inc. (NFLX), GE Aerospace (GE), Abbott Laboratories (ABT), PepsiCo, Inc. (PEP), Marsh & McLennan Companies, Inc. (MMC), Interactive Brokers Group, Inc. (IBKR)

Friday: American Express Company (AXP), The Charles Schwab Corporation (SCHW)

^{Source: Zacks, July 11, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

Just to be aware: Remote Access Tools (RATs) can give criminals control of devices.

Schwab has identified a recent trend where fraudsters have been using Remote Access Tools (RATs) in combination with phishing attacks to compromise digital devices like mobile phones, tablets, laptops and desktops. These RATs are tools that are used for legitimate purposes—IT support for example. However, bad actors can abuse them to steal assets and data.

How a RAT-based attack works:

1. First, the fraudster sends a phishing email with a link or attachment that appears legitimate.
2. Once the victim clicks, the RAT is installed on that device without any notification to the user, and automatically connects to a remote server controlled by the attacker.
3. At this point, the attacker can:
• Steal sensitive data (passwords, financial details, etc.)
• Monitor user behavior through keylogging and screen recording
• Gain access to anything the user accesses using the infected device, which can include Schwab Advisor Center or Schwab Alliance. This online access can let them set up fraudulent trades and/or money movements.
4. This type of attack is difficult to detect for many reasons, including:
• The fraudulent activity is generated by a device that's trusted by the user.
• These attacks may use legitimate applications, so the problem may not show up in antivirus/malware scans.

Unlike many other scams, RAT-based attacks do not require interaction with a scammer or taking action to download malicious software—for that reason, these attacks can seem "invisible". RAT-based attacks are versatile and difficult to detect, so they are particularly dangerous. It's important to look out for these red flags:

• Clicking a link or attachment in a seemingly legitimate communication from a government department or trusted institution may appear to do nothing, Unfortunately, a RAT may have been installed with no other notification.
• If your device suddenly displays a blue or black screen and a message like  "Do not turn off your computer. Computer is currently being scanned," this may be a sign that a RAT attack is in progress. Immediately shut down the device, contact your IT professional.
• Watch for any account activity that does not align with typical investment behavior.

Real-world RAT attack scenarios:

Example: Client online account takeover
A client receives a text message that appears to be from their financial institution, asking them to verify account information by clicking a link. This phishing text directs the user to a spoofed website, a RAT is downloaded to the device, and then the bad actor uses the remote tool to gain access to the user's online accounts to steal data or funds. The Schwab Security Guarantee may or may not be applicable for this type of loss—each incident will be reviewed on a case-by-case basis.

In case of suspected RAT infection:

• Disconnect from the internet immediately. This prevents the RAT from communicating with the attacker. Contact your firm's IT department immediately. Or, if your firm doesn't have IT specialists, review and remove any apps on your device that you don't recognize. Caution: If you are unsure or unable to identify and/or remove the RAT yourself, consult a cybersecurity expert as soon as possible.
• If you are still unable to remove the software, consider factory resetting your device—this may be required to ensure complete removal of the RAT.
• Assume your credentials have been compromised, but don't change them until after you have successfully removed the RAT. Otherwise, the attacker may be able to discover and leverage your new credentials.

Have a great week! Sean, Erin, & Trish

Fennec fox
Yong in, Gyeonggi do, South Korea

Footnotes and Sources

^{1. WSJ.com, July 11, 2025}

^{2. Investing.com, July 11, 2025}

^{3. CNBC.com, July 7, 2025}

^{4. CNBC.com, July 8, 2025}

^{5. WSJ.com, July 9, 2025}

^{6. MarketWatch.com, July 9, 2025}

^{7. CNBC.com, July 10, 2025}

^{8.  CNBC.com, July 11, 2025}

^{9. WSJ.com, July 9, 2025}

^{10. MarketWatch.com, July 10, 2025}

^{11. IRS.gov, March 6, 2025} 

^{12. Downshiftology.com, March 18, 2025}