Market update for July 22, 2025

Here is a market update as of July 2025. I want to focus on three different things:

1. The jobs market. 

2. Tariffs, interest rates, and inflation. 

3. The stock market.

So, jobs. The U.S. economy has shown resilience in the jobs market, with June adding a solid 147,000 private sector jobs and unemployment holding steady at 4.1%, a reassuring sign of employer confidence. While a modest loss of 10,000 government jobs might hint at a bureaucratic timeout, the overall labor market remains a steady heartbeat, giving us a reason to smile amidst the volatility. We’re keeping a close watch on any shifts to ensure your financial plans stay robust.

Tariffs are stirring the pot a bit, with trade uncertainties causing some market jitters, though their impact on inflation has been pleasantly muted so far—supply chains are holding strong, keeping costs in check! Interest rates are currently hovering between 4.25% and 4.5%, as the Fed plays its cautious game, with projections pointing to potential cuts in September or December 2025 if tariff chaos doesn’t heat things up too much. Inflation is giving us a little breather these days, with the latest numbers showing an annual rate of 2.6% and a month-to-month drop to 2.4% as of June 2025—quite a relief from earlier highs from late 2024! This easing, driven by lower energy and food prices, is a good sign that the tariffs are not causing rising prices, which are an effect of inflation. This is very good news. 

At the end of June, 2025, the stock market showcased a mixed yet resilient performance, with the S&P 500 and Nasdaq reaching impressive highs in June, buoyed by a tech sector rally and optimism around trade negotiations. At the end of June there was a slight dip, only to take off to all-time highs in July, and we currently sit at all-time highs as of July 22, 2025. The stock market is resilient! Remember back in April, 2025 when everyone panicked over a big drop in the markets? I sent an email and said this: "Breathe. Let things calm down over the weekend, and pay attention on Monday for a snapback in the markets, which is common with a correction of around 10%. Not guaranteed, but common." From the low on April 8, 2025 to the high now today on July 22, 2025, the market bounced back 23.67%! Call me Nostradamus...haha!

So, that's the current update. I'm always open for questions about this stuff, so please reach out. Always remember these three rules:

1. Be consistent in saving and investing (every time you get paid).

2. BUY LOW SELL HIGH!

3. Keep a long term perspective in saving and investing. Play the long game.

Happy investing!