Tesla's Q2 2025 hit a roadblock, with earnings down 23% year-over-year and operating income falling 42%, with nearly half coming from regulatory credits rather than core operations. CEO Elon Musk redirected focus to Tesla's robotaxi rollout, aiming to cover half the U.S. population by year-end, starting with services in Austin and upcoming expansions in the Bay Area, Arizona, and Florida. Musk cautioned investors about "a few rough quarters" ahead but expressed confidence in Tesla’s future as an AI and robotics company, predicting it could become the most valuable company in the world. Tesla highlights advancements in its Optimus humanoid robot, with production targets of 100,000 units per month within five years. The company began producing more affordable EVs in early 2025 and expects continued growth in its energy storage segment. Plans for a third Megafactory in Houston.

EQUITY

The Dow hit a fresh record with over a 1% gain, falling short of new highs that Nasdaq and S&P 500 saw. Market was driven by trade deals, the most recent one between U.S. and the European Union, featuring a 15% baseline tariff on EU goods with exemptions, similar to Japan's rate, instead of the previously proposed 25%. Healthcare stocks led sector gains while GE Vernova surged 14.6% after beating earnings expectations and raising its cash flow forecast.

GOLD

Gold price snaps three-day rally streak, falling 1.3% after hitting a five-week high, with risk in international trade no longer a concern after Trump Administration's trade deal with Japan, the first before Trump's August 1 deadline followed by the European Union on a 15% tariff framework. Gold could remain in consolidation ahead of Federal Reserve's meeting, where clues on rates are monitored, with bets currently on October cuts.

OIL

WTI benchmark fell for a fourth consecutive session, ignoring a 3.2 million drawdown in U.S. crude inventories that doubled analyst estimates. The trade deals combined with the drawdown should have increased fuel demand, but oil is still weighed down by OPEC+ plans. Oil prices found some support from EU sanctions on Russian oil that blacklisted over 400 ships in Russia's shadow fleet and concerns about global supply.

CURRENCY

China's yuan surpassed an eight-month high against the dollar ahead of upcoming U.S.-China trade talks in Stockholm. It came as both countries have been sending positive communications pertaining to trade relation while China faces a deadline of August 12 to reach an agreement to avoid additional U.S. tariffs. The dollar continue to slide against major currencies amid these trade developments, with risk assets rallying as global trade landscape improve.