Weekly Summary, 3 July: ECB, S&P 500 Records, Musk–Trump Tensions, and Spain’s Stock Surge

As we closed out the month of June and stepped into the first days of Q3, markets offered a blend of optimism, volatility, and political theatrics. This week, from Wall Street records to European index outperformance and central bank cues, had no shortage of financial headlines. Here's your wrap-up of the week’s top stories.

ECB Forum and Inflation Talks Shape Market Outlook

The week began with a focus on the ECB Forum in Sintra, where global central bankers, including Fed Chair Jerome Powell, offered cautiously optimistic tones. Powell signalled that although inflation had slowed, more data would be needed before the Fed would consider cutting rates. Meanwhile, eurozone inflation readings due later in the week and upcoming US CPI data kept traders on edge. The start of Q3 also brought lighter trading volumes due to the US Independence Day holiday, setting a quiet tone for what could be a pivotal economic month. Read more

Spain’s IBEX 35 Outperforms Major EU Indices in H1 2025

Spain’s IBEX 35 emerged as a surprise leader in the first half of 2025, beating broader EU benchmarks with a gain of around 11%. The rally was driven by renewed investor confidence in Spanish banking stocks and positive economic sentiment amid easing inflation. Despite persistent challenges across the eurozone, the IBEX has benefited from localised stability and appears well-positioned going into the second half of the year. Read more

S&P 500 and Nasdaq Set New Highs as US Dollar Softens

US equity markets remained buoyant as both the S&P 500 and Nasdaq hit fresh all-time highs, fuelled by lower bond yields and continued optimism over a potential soft landing for the US economy. A weaker dollar provided further tailwinds to tech stocks, with investors piling into AI-driven and mega-cap firms. The positive mood signalled strong investor appetite despite looming uncertainties around inflation data and interest rate trajectories. Read more

Bezos Cashes Out, Tesla Slips Amid Musk–Trump Controversy

In the week’s most headline-grabbing moment, Jeff Bezos sold $5 billion worth of Amazon shares, marking one of his largest sell-offs in recent years. Meanwhile, Tesla stock slipped after Elon Musk engaged in a public spat with U.S. President Donald Trump, which spooked some investors. The political fray added another layer of uncertainty for Tesla, which is already navigating slower EV demand and increased global competition. Read more

S&P 500 Gains as Traders Eye Trade Talks and Fed Clarity

Mid-week saw renewed gains in the S&P 500, boosted by optimism around US–China trade discussions and a growing belief that the Fed may be nearing a policy pivot. Stronger-than-expected corporate earnings also supported market sentiment, with traders hopeful for a stable economic trajectory in the second half of 2025. The easing of trade tensions added to the risk-on mood. Read more

Conclusion

This week’s markets were defined by cautious central bank optimism, geopolitical drama, and an appetite for risk among investors. While Wall Street climbed to new highs, Europe delivered regional standouts, most notably in Spain. With CPI data on the horizon and Q3 underway, the coming weeks promise continued momentum, or perhaps a recalibration.

*Past performance does not reflect future results.

TL;DR FAQs

What did the ECB and Fed signal this week?

They both suggested that while inflation has eased, more consistent data is needed before making any decisions on rate cuts.

Why is the S&P 500 hitting new highs?

Lower bond yields, a weakening dollar, and investor enthusiasm for tech and AI stocks have pushed the index higher.

What’s behind Spain’s stock market strength?

The IBEX 35 outperformed due to strong banking stocks and positive investor sentiment amid stabilising inflation.

Why did Tesla’s stock fall?

Elon Musk's clash with President Trump introduced fresh political controversy, shaking investor confidence.