In a month of excessive news in July, the US stock market remained strong.
July 2025 saw a concentration of corporate earnings reports for the second quarter, along with significant economic indicators and the Federal Reserve's policy meetings, resulting in a month that felt like a flood of information for market participants. Amidst this, the stock market overall remained strong, with the S&P 500 rising 2.2% and the Nasdaq 100 increasing by 2.4%, concluding with stable results.
Towards the end of July, there were positive signs in the US-China trade negotiations, and major tech companies such as Alphabet [GOOGL], Meta Platforms [META], and Microsoft [MSFT] showed strong demand in the AI and data center sectors.

Current fundamentals: Sharp rebound due to employment statistics and resignation of FRB board member
The range and closing price for the week of July 28 (Bid rate of Manex Trader FX)

・USD/JPY: 147.292 yen - 150.914 yen 147.389 yen

・Euro/USD: $1.13911 - $1.17701 $1.17392

・Euro/Yen: 169.723 yen ~ 173.891 yen 170.904 yen
Last week (week of July 28), USD/JPY: a week of back and forth.
Last week (the week of July 28), there were important financial events such as the FOMC (Federal Open Market Committee), the Bank of Japan meeting, and U.S. employment statistics. Both the FOMC and the Bank of Japan meeting were significant.

The US stock market's drop highlights concerns over economic slowdown as employment stats fall short. Japan's stock scene is subdued with key earnings from companies like Toyota. Attention is also on the upcoming ruling party meeting amid political turbulence.

The essay discusses the impact of the July 2025 U.S. employment statistics on the stock market, highlighting parallels with a similar scenario from August 2024. It emphasizes the importance of maintaining a long-term investment perspective despite short-term market fluctuations.

The U.S. stock market experienced declines across key indices following disappointing July employment data. Major tech stocks such as Apple and Amazon were heavily sold, contributing to continued downward trends in the Dow, Nasdaq, and S&P 500. Economic indicators reflected a softening labor market.

The essay discusses the recent performance of the S&P 500, highlighting its significant rise and stable market conditions. It examines the recovery of AI-related stocks, the positive outlook for corporate earnings, and the benefits of a weaker dollar for US companies. It also touches on investment strategies, particularly the importance of long-term investing.

Cadence Design Systems [CDNS] reports a 20% increase in revenue due to AI-related demand.
Cadence Design Systems [CDNS], a company that develops EDA tools to automate the design of integrated circuits and electronic devices, announced that its fiscal results for the April-June 2025 period showed a revenue increase of 20% year-on-year to $1.275 billion, while net profit decreased by 30% to $165 million. The non-GAAP EPS (earnings per share) was $1.65, exceeding the market forecast of $1.55 compiled by LSEG (London Stock Exchange Group) by 6.1%.
The demand for generative artificial intelligence (AI) has driven up sales, achieving a 20% increase in revenue. In addition to the increase in cost of goods sold and maintenance expenses,

The essay reviews market trends for Bitcoin from July 25 to July 31, detailing price fluctuations due to various factors like US trade negotiations and FOMC decisions. It forecasts potential adjustments for August, considering economic indicators and legislation affecting the cryptocurrency market.

The portfolio's performance has seen a slight decline to approximately 15% excess returns since inception due to market challenges in July, but it still significantly outperforms benchmarks. The strategy for August includes several new stocks and exclusions.

The essay analyzes the outlook for U.S. interest rates in late 2025, emphasizing the potential pressures on real interest rates due to economic slowdown, inflation expectations from tariffs and wage inflation, and the need for balanced investment strategies in bonds and stocks.

The U.S. stock market experienced declines in all major indices, with the Dow dropping 330 points amid lowered expectations for rate cuts and concerns about healthcare stocks. Upcoming employment data adds to market caution.

The Bank of Japan decided to maintain the policy interest rate at approximately 0.5% while revising up the inflation outlook for FY2025 to 2.7%, primarily due to rising food prices. They emphasized a cautious approach, stressing the importance of actual data over predictions for future policy decisions.

The essay examines the recent rise of the yen's depreciation against the US dollar, analyzing its relationship with interest rate differentials and the implications of Japan's political instability. It suggests that the yen's weakness is driven by speculative trading rather than economic fundamentals, with a notable focus on the effects of trade deficits.

In June 2025, Japan's industrial production index showed a 1.7% increase, despite a decline in shipments. While some sectors like electronics are expected to grow, uncertainties remain. Equipment investment is steady, suggesting a resilient economy.

このエッセイでは、今後数年間に保持すべきAI企業の長期的な成長可能性について論じており、Nvidia、Meta Platforms、Amazon、Aurora Innovation、Uber Technologiesの独自の強みとAIエコシステムにおけるポジションを強調しています。

このエッセイは、Intuitive Surgical、Schlumberger、Charles Schwab、3M、Verizon Communicationsを含む複数の企業の第2四半期の財務結果をレビューしており、全てが収益と1株当たり利益において市場の期待を上回ったことを指摘しています。

The evolution of AI has transformed programming, allowing tasks to be accomplished using natural language instead of traditional coding languages. Consequently, proficiency in English has become crucial for effectively instructing AI, marking a shift in essential skills for programmers in the AI era.

The FOMC's recent meeting revealed a split on interest rate policies, with two board members opposing the decision to maintain rates. Despite ongoing pressure for cuts, Chair Powell emphasized caution, noting economic uncertainties. Future policy decisions will depend on factors like inflation and employment trends.

The essay discusses the significant fluctuations in the euro/yem market, particularly focusing on its surge until July 2024, which deviated from the Japan-Germany interest rate differential. It analyzes how the euro/yem crash was influenced by movements in the dollar/yem and speculates on future trends in relation to interest rate differences.