Market Analysis: July 9th, 2025

Global Markets

Canadian Markets

Canada’s main stock index climbed on Tuesday, lifted by gains in gold stocks, as investors assessed  new tariffs and trade measures that could impact global commodity flows.  Bank of America has become more bullish on Canadian banks, citing optimism  on new government policies and an improved economic forecast for the latter half of the year.

American Markets

US stocks extended their broad-based rally, supported by robust gains in tech stocks, as Nvidia (NVDA) surged to an all-time high following renewed investor optimism in AI and semiconductor demand. Positive sentiment was also bolstered by expectations of sustained economic resilience and a potentially dovish Federal Reserve tone ahead of upcoming inflationary data.

According to a report from an Ameriprise analyst, equities have reached their most overbought condition in over a year, raising the possibility of a pullback.

European Markets:

European stock markets also posted solid gains, driven largely by a rally in defense-related shares, as geopolitical concerns and increased NATO-aligned spending plans boosted sector confidence. However, the European Central Bank (ECB) issued a warning on potential capital outflows, citing risks from diverging interest rate paths between Europe and other major economies like the U.S., which could pressure the euro and European investment inflows.

UK Markets:

In the UK, stocks edged modestly higher, though gains were tempered by corporate and economic concerns. Policymakers have been urged to intervene in the ongoing exodus of British firms listing abroad, citing competitiveness and capital market reforms as causations for the stock listing flight. British firm, WPP Plc, one of the world’s largest advertising firms, issued a profit warning, citing a slowdown in client spending, which dragged on media and communications stocks and weighed on overall market sentiment.

Corporate News

AES Corp (AES)
Exploring strategic options including a potential sale amid takeover interest from large investment firms.

Alphabet Inc (GOOGL)
Google’s AI investments focus on infrastructure; also in talks to acquire U.S. broadcast rights for Formula 1. YouTube may block Pakistani political channels under court pressure.

Apple Inc (AAPL)
Appointed Sabih Khan as new COO, replacing Jeff Williams. Khan has been with Apple since 1995 and led operations.

Arm Holdings PLC (ARM)
Data center customer base has surged to 70,000, a 14-fold increase since 2021, driven by demand for AI computing.

Citigroup Inc (C)
Plans to create 510 jobs in Charlotte, NC, with a $16.1 million investment in a new office facility.

FVCBankcorp Inc (FVCB)
Piper Sandler initiates coverage with an Overweight rating and $16 target, citing improved profitability and low credit risk.

GeneDx Holdings Corp (WGS)
Initiated with Overweight rating and $110 price target by Piper Sandler, citing strong growth potential in rare disease testing.

Johnson & Johnson (JNJ)
Won a U.S. appeals court ruling that blocks Teva and Viatris from invalidating a patent on schizophrenia drug Invega Sustenna.

Loblaw Companies Ltd (L:CA)
National Bank of Canada raised its target price to C$235 from C$234, citing expected sales growth and efficiency gains.

Merck & Co Inc (MRK) 
Merck to acquire Verona Pharma for about $10 billion, paying $107 per ADS, a 23% premium. Strengthens Merck’s respiratory portfolio ahead of cancer drug patent expiry.

Meta Platforms Inc (META)
Acquired nearly a 3% stake in EssilorLuxottica (~€3B), with plans to potentially raise stake to 5%, amid rising demand for AI-driven wearable devices.

RxSight Inc (RXST)
Piper Sandler slashed target to $10 from $18 after lowered FY2025 guidance.

Starbucks Corp (SBUX)
China business may be partly sold, with potential valuation up to $10 billion. Buyers include Hillhouse, Carlyle, KKR.

UnitedHealth Group Inc (UNH)
DOJ and FBI probing how UnitedHealth deployed clinicians to inflate Medicare claims.

Zebra Technologies Corp (ZBRA)
Stephens raised target to $350 from $300, citing new strategic alternatives for warehouse operations.

STA Research

STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.