NVIDIA becomes the world's first company to surpass a market capitalization of 4 trillion Dollars, with attention on the earnings announcement in the US stock market | Hiyachiro Okamoto's path to mastering US stocks | Manekuri, a media outlet providing investment information and financial tips from Monex Securities

For the week of July 7th, both the S&P 500 and Nasdaq 100 were in negative territory on a weekly basis.

Last week (the week of July 7), while the U.S. stock market appeared to show a calm trend, there were intense movements within the market. The White House's hardline stance on tariffs, the market's "familiarity" with it, and notable events such as NVIDIA [NVDA] becoming the first company in the world to reach a market capitalization of $4 trillion (approximately 590 trillion yen) all coincided.

Although the S&P 500 and Nasdaq 100 recorded all-time highs during the week, they fell by the weekend due to concerns over the re-imposition of tariffs, ending the week with the S&P 500 down 0.31% and the Nasdaq 100 down 0.38%, both in negative territory.

S&P 500 Energy Sector Top Performance with +2.48% Weekly

However, what has certainly been happening is that while the super-large IT stocks, which have been primarily bought up until now related to AI, are taking a breather, funds are gradually starting to shift towards sectors such as finance, energy, and materials.

In particular, the S&P 500 energy sector showed the best performance of the week at +2.48%, against the backdrop of the rebound in WTI crude oil prices, Trump's hints at sanctions against Russia, and the decrease in the number of active rigs in the United States.

On the other hand, there was a headwind for AI-related software stocks. Hock Tan, the CEO of Broadcom [AVGO], stated that "AI could potentially erode the value of software in the long term," leading to significant sell-offs in stocks such as Datadog [DDOG] and Salesforce [CRM].

Additionally, there were noteworthy movements in the cryptocurrency market. Bitcoin broke through the $110,000 barrier, with inflows into Bitcoin spot ETFs exceeding $1 billion for two consecutive days, indicating a renewed interest from investors. Including expectations for interest rate cuts and correlations with tech stocks, it seems likely that movements will continue to be sensitive to the macro environment.

NVIDIA [NVDA] stock leads the market, while Netflix [NFLX] remains stable, although some analysts are cautious.

Last week (week of July 7), the most attention was drawn to Nvidia [NVDA], the ruler of AI semiconductors. The company's market capitalization surpassed $4 trillion, exceeding Apple's [AAPL] previous all-time high. The narrative of being 'at the center of AI infrastructure development' remains strong, and as the market adopts a wait-and-see attitude ahead of the FOMC (Federal Open Market Committee) meeting in late July, Nvidia [NVDA] shares played a leading role in the market.

On the other hand, Netflix [NFLX], which was a former member of FAANG but was excluded from the "Magnificent 7," has recorded an astonishing performance with a 40% increase in 2025 and an 83% rise over the past 12 months. The surge in subscribers is attributed to measures against password sharing and the introduction of ad-supported plans; however, some analysts have downgraded the stock, stating that "growth expectations are already priced in."

This week (week of July 14) marks the full-scale start of earnings season, with a focus on the financial sector.

This week (the week of July 14), the full-scale arrival of the second quarter earnings season begins. The financial sector is the first point of focus. Earnings reports from 38 companies in the S&P 500 are scheduled, with banks accounting for half of them. The steepening of the yield curve (the widening of the interest rate differential between short-term and long-term rates) is a tailwind for banks and may have a positive impact on the profitability of commercial banks and regional banks.

On July 15 (Tuesday), JPMorgan Chase [JPM], Citigroup [C], and Wells Fargo [WFC] will report, followed by Bank of America [BAC], Goldman Sachs [GS], and Morgan Stanley [MS] on the 16th (Wednesday). These earnings reports will focus on the impact of narrowing interest margins and exposure related to commercial real estate.

Major tech companies also announce earnings; will the results of economic indicators influence market sentiment?

Also, tech giants continue to be in the spotlight. The previous rise has been largely driven by expectations, and this earnings report will question how much AI-related growth is actually contributing to revenue. In particular, whether stocks like NVIDIA [NVDA], Microsoft [MSFT], and Alphabet [GOOGL] can meet expectations in their performance will significantly impact the overall market sentiment.

In addition, the performance of non-financial mega-cap companies such as Netflix [NFLX] (17th), Johnson & Johnson [JNJ] (16th), and GE Aerospace [GE] (17th) is also attracting attention.

The market may seem calm at first glance, but I feel that significant capital flows have begun to steadily move beneath the surface. When the tide changes, it often starts quietly. As investors, it is essential to pay attention to these internal market movements without being distracted by short-term price fluctuations.

In the US economic indicators, the June Consumer Price Index (CPI) on Tuesday, July 15, retail sales on Thursday, July 17, and housing starts on Friday, July 18, could influence market sentiment. The CPI will be a barometer for the sustainability of inflation slowdown, while housing-related indicators will serve as a test of the economy's resilience.