(Morning) Dow continues to decline, but S&P 500 and Nasdaq hit all-time highs. Will the Japanese market face resistance after the House of Councillors election? | Market Overview | Money Click - Monex Securities Investment Information and Financial Media.

【US Stock Market】New York Market

NY Dow: 44,323.07 ▼19.12 (7/21)

NASDAQ: 20,974.18 △78.52 (7/21)

1. Overview

Last weekend, the US market saw the Dow Jones Industrial Average decline for the first time in three days due to weekend position adjustments. Reports that President Trump is taking a strong stance in tariff negotiations with the EU also weighed on market sentiment. Similarly, the S&P 500 stock index fell for the first time in three days, while the Nasdaq Composite Index, which has a high proportion of tech stocks, rose slightly for the fifth consecutive day, setting a new all-time high.

The previous day's US market had mixed results. The Dow average started trading at $44,368, up $26. Although uncertainty over tariffs with the EU weighed on stock prices, there was buying centered around tech stocks ahead of the earnings announcements for the April to June quarter that began in earnest the previous week. The Dow average reached $44,601, up $259, in the middle of the day, but as selling emerged towards the end, it closed down $19, marking a slight decline.

The S&P 500 stock price index rebounded 8 points to 6,305 points, while the Nasdaq Composite Index rose 78 points to 20,974 points, marking a six-day winning streak. Both indices have reached new all-time highs.

2. Economic Indicators, etc.

The preliminary value of the University of Michigan Consumer Sentiment Index for July, announced on the 18th, exceeded market expectations and previous results, indicating an improvement in consumer sentiment. The Leading Economic Index released on the 21st showed a 0.3% decline compared to the previous month, worsening beyond market expectations and previous results, indicating uncertainty about the future.

3. Sector Trends

In the sector-specific stock price index of the S&P 500 from the previous day, 7 out of 11 sectors rose. Among them, the Communication Services sector increased by over 1%, while the other 6 sectors also saw increases of less than 1%. On the other hand, the Energy sector fell by about 1%, and the remaining 3 sectors also experienced slight declines.

4. Individual Stock Trends

On the previous day, 13 out of the 30 components of the Dow Jones Industrial Average rose. Among them, Verizon Communications [VZ] saw an increase of over 4% as its earnings for the April to June 2025 period exceeded market expectations due to strong sales of mobile devices, and it raised its full-year profit outlook, which was well received. Other stocks included Nike [NKE], which rose by about 2%, and Amazon.com [AMZN] and Home Depot [HD], which both increased by more than 1%. On the other hand, American Express [AXP] and Travelers Companies [TRV] fell by more than 1%.

Outside of the Dow average component stocks, Alphabet [GOOGL], which is set to announce its earnings, saw a 2.7% increase. Block [XYZ], which provides online payment services, rose 7.2% after it was reported that it has been newly adopted as a component of the S&P 500 Index. On the other hand, Domino's Pizza [DPZ], which reported second-quarter earnings below market expectations, fell by 0.8%.

5. Exchange Rates, Interest Rates, etc.

The long-term interest rate from the previous day decreased by 0.04% to 4.38%. The dollar-yen exchange rate is fluctuating in the low 147 yen range this morning on the 22nd.

VIEW POINT: Today's Perspective

The US market has shown a mixed performance from last weekend to yesterday, but it has remained resilient. In Japan, the ruling party was unable to secure a majority of seats in the House of Councillors election on the 20th, revealing instability in the political landscape. However, the current USD/JPY exchange rate has been slightly appreciating against the yen, in line with prior expectations. The focus in the near term is expected to be on the upcoming tariff negotiations on August 1, and due to a lack of positive factors in today's Japanese market, a heavy trading session is anticipated.

(Monex Securities Financial Intelligence Department Keita Yamaguchi)