Tariff Stock Investing Impact 2025

Plus, Bitcoin’s strong 2025 start.

July 07, 2025

Today is Monday, July 7, 2025.

The Early Bird Index today is 86.73

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Tariff Stock Investing Impact 2025

At the midpoint of 2025, it is clear that deglobalization and tariffs are the biggest stock market investment themes so far this year.

Details: Trade tensions and tariff policies, particularly those introduced by President Trump, have been a central driver of market volatility. The imposition and subsequent pausing of "Liberation Day" tariffs in April caused sharp swings in the S&P 500, highlighting the market's sensitivity to global trade policy.

Background: The introduction of new tariffs in 2025 exposed vulnerabilities across sectors and regions, leading to heightened market uncertainty and volatility.

Powering the Story: Deglobalization has been identified as a major investment theme, with investors and analysts closely watching how shifting global supply chains and increased trade barriers are affecting corporate earnings and sector performance.

Early Bird’s Nest Egg Gains: For the remainder of 2025, deglobalization and tariffs are likely to keep markets volatile, pressure earnings in trade-exposed sectors, and drive a shift toward broader market leadership and international diversification.

Final Thoughts: If there’s one thing for certain in the stock market of 2025, it’s that uncertainty is running wild.

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Notables

Notable Earnings Today: N/A.

Notable IPOs Today: Churchill Capital Corp X Class A Ordinary Shares (Nasdaq: CCCX), Wen Acquisition Corp Class A Ordinary Shares (Nasdaq: WENN), MaxsMaking Inc. Class A Ordinary Shares (Nasdaq: MAMK).

Notable Equity Crowdfunding Campaigns Ending Today: Embers Bakery (Honeycomb), Downtown Delights (Honeycomb).

Notable Economic Events Today: Fed's Balance Sheet (4:30 p.m. ET).

Explaining Bitcoin’s Strong 2025 Start

The price of Bitcoin $BTC.X ( ▼ 1.42% ) is up about 16% through the first half of 2025.

Details: Institutional participation in Bitcoin has grown thanks to the approval of spot Bitcoin ETFs.

Powering the Story: With so much uncertainty in the market with tariffs and interest rates, more investors see Bitcoin as a good hedge.

Final Thoughts: Of course, just because Bitcoin had a strong first half in 2025 doesn’t mean the second half of the year will be strong.

Industrials, Communication Services Surge in 2025

With the year halfway done, some stock sectors have emerged as big winners, and others have fallen behind.

Winners: Industrials led all sectors with a 12% return in the first half of 2025. Communication Services returned 10.6%. Financials were up 8.4%.

Big Losers: Consumer Discretionary stocks were down 4.2% in the first half of the year. Healthcare stocks fell 2%.

Final Thoughts: Meanwhile, big tech stocks were volatile in the first half of the year, but were ultimately positive.

Good Question: Has There Ever Been a Better Time to Buy an EV? (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.