Stock Market Update Tuesday July 29, 2025
- AlgoTradeAlert
- Jul 29, 2025
- 2 min read
Stock Market Update Tuesday July 29, 2025 For the second consecutive session, U.S. equities opened with a bullish gap—only to reverse intraday and finish broadly lower across the board. All major indices closed in the red, with the S&P 500 retreating by 0.3%, the Nasdaq 100 (QQQ) slipping 0.2%, and the Russell 2000 (IWM) underperforming with a 0.6% decline. The S&P 500 now trades just below record highs, as markets brace for a critical slate of macroeconomic and corporate catalysts in the latter half of the week.
Away From Stocks: Volatility picked up meaningfully. Crude oil rallied sharply on the back of a couple of headline-driven developments, while the U.S. 10-year Treasury yield edged lower to 4.32%, reflecting a modest bid for duration. Meanwhile, the U.S. dollar extended its recent rebound, with the DXY index hovering just below the psychologically important 99 level.
The United States and Europe recently completed a major trade agreement. This is seen as a political victory for President Trump, especially because many doubted a deal could be reached before August. However, more trade talks are coming up, including important ones with India and China. Investors are still watching out for inflation caused by rising tariffs, but we believe any selling in the market will be temporary.
Investor attention is now shifting to a series of key macroeconomic events. Wednesday will spotlight the Federal Open Market Committee’s (FOMC) July rate decision and the release of Q2 GDP data. On Thursday, focus turns to the June Core Personal Consumption Expenditures (Core PCE) index—widely regarded as the Federal Reserve’s preferred inflation gauge. Friday brings a dense macro calendar: a potential August 1 trade deal deadline (which remains subject to delay), July’s Non-Farm Payrolls at 9:30 AM, June’s ISM Manufacturing Index at 10 AM, and the University of Michigan’s updated 1-year inflation expectations. Notably, inflation expectations—both from the University of Michigan and alternative measures such as the Conference Board and the New York Fed—have been trending lower.
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