23rd July – Stocks mixed again as record run slows

Global markets were mixed, with the Dow up slightly, the Nasdaq down 0.5%, and the S&P 500 nearly flat—reflecting a continued slowdown after months of record gains. Australian shares posted a small gain, helped by strong commodity prices, while money rotated out of the overpriced banking sector and into healthcare, materials, and other areas. Iron ore, copper, gold, silver, and lithium all rallied, with iron ore up 7% for the week, copper hitting a record, and lithium stocks up more than 10% in recent sessions. These moves benefited local miners and sparked a broader rebound in resources.Defense stocks performed well in the U.S., with several key contractors posting strong results, while the broader tech sector was pressured by ongoing delays and scaling back in a major AI data center project. Disappointing earnings affected a few consumer giants, and the auto sector struggled with profit declines, especially in North America.Trade policy remains a source of uncertainty, with limited details on new agreements and Congress in recess, leaving key issues unresolved. The risk of new tariffs on pharmaceuticals, copper, and other products could add to inflationary pressures. Despite this, expectations for Google and Tesla earnings remain positive, and the market appears to be looking ahead to the future rather than dwelling on current results.With little major economic data expected in the days ahead and a focus on commodities, there is a sense that real assets may be undervalued relative to U.S. tech stocks. The momentum in mining, combined with resilient healthcare and materials sectors, could help the Australian market maintain strength even if the U.S. weakens. The end of the week is likely to be quiet, but continued gains in commodities could sustain positive momentum.