Stocks Stall as Focus Shifts to ‘One Big Beautiful Bill’ Tax Changes
Market Recap for the Week of July 13, 2025
Last week was relatively uneventful for the U.S. stock market. The S&P 500 ended the week essentially flat, with no significant gains or losses. Now that the one big, beautiful bill has passed, we can begin analyzing some of the upcoming changes it introduces.
The main change is that marginal tax brackets will not revert to their pre-2016 levels. Had the bill not passed, those brackets would have automatically increased. Additionally, taxpayers over age 65 will receive an extra $1,600 standard deduction. This means most seniors should see a slight decrease in their tax liability next year.
Another noteworthy change is the increased deductibility of state and local taxes (SALT). Under the previous law, taxpayers could only deduct up to $10,000 in SALT on their federal return. That limit has now been raised to $40,000, provided the taxpayer’s income falls below a certain threshold.
There are many more changes included in the legislation. However, in the interest of keeping this newsletter from becoming hundreds of pages long (like the “big beautiful bill” itself), we will outline additional updates in future editions.
“The S&P 500 held steady last week, while the new tax bill delivers relief for seniors and expands SALT deductions.”
Chart of The Week
Our chart of the week highlights a frustrating trend for first-time homebuyers. It shows the percentage of home sales going to first-time buyers—a figure that was around 50% in 2010. Today, it's down to just 25%. High home prices and elevated interest rates continue to keep many first-time buyers out of the housing market.
The commentary in this blog is for informational purposes only and should not be taken as personalized investment advice
Chart Source: National Association of Realtors, Apollo Chief Economist
