The number of private and public companies filing for bankruptcy in July totaled 71, the highest amount since 2020, according to Business Insider. Although the stock market has performed well as of late, rising bankruptcies hint at deeper issues.
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Recent bankruptcies, including household names like Forever 21, Rite Aid, and canned goods company Del Monte Foods, reflect the pressure from rising tariffs and high interest rates. These factors have strained supply chains and driven up costs for many companies.
S&P 500 Buoyed by Magnificent 7 amid Tariff, Rate Pressures
“Companies are contending with elevated interest rates as uncertainty from US tariff policy pressures costs and supply chain resilience,” said S&P Global (SPGI).
The Magnificent 7’s outsized market share of the S&P 500 (SPX) has lifted the index’s performance, potentially masking subpar performance from the remaining stocks. The group accounts for about 34% of the index, a record high.
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