U.S. Markets
Stocks rode the wave of trade developments and Q2 corporate results to advance last month, pushing market averages to multiple record highs.
The Standard & Poor’s 500 Index gained 2.17%, while the Nasdaq Composite rose 3.70%. The Dow Jones Industrial Average edged 0.08% higher.1
All About Tariffs
Early in the month, a better-than-expected June jobs report from the Bureau of Labor Statistics gave stocks another boost, reassuring investors that the U.S. economy was weathering trade and geopolitical shocks.2
However, sellers gained the upper hand after the White House sent letters to dozens of countries announcing new tariffs, which were set to take effect on August 1. Stocks came under pressure after the White House announced tariffs on seven additional countries. But the markets gradually recovered, hoping the administration would dial back its steepest tariff rates. The S&P 500 and Nasdaq rose to fresh records.3,4
Upbeat Outlook
Stocks rose steadily over the second half of the month as investors viewed trade developments, economic updates, and Q2 corporate results in a positive light. Optimism around the Q2 corporate reporting season gave way to mostly positive market reactions as the actual reports began to roll in.5
Trade in the News
Trade negotiations took center stage again after the White House announced an agreement with Japan. The Nasdaq closed above 21,000 for the first time, while the S&P hit its 12th record close this year.6
Busy Economic Week
In the final four trading sessions of the month, stocks mostly went sideways, as investors digested a lot of economic news.6
Investors largely yawned at the news of the trade agreement between the U.S. and the E.U. Traders seemed a bit more concerned that China stalled slightly. Stocks gained after the gross domestic product report showed consumer spending powered the economy to 3 percent growth in Q2, but dipped after the Fed held rates steady.7,8
What Investors May Be Talking About in August |
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| While there is no Fed meeting in August, investors will hear plenty from Fed officials during the month.
The Fed will release the minutes of its July meeting on August 20, which may provide some clues about policy direction. And on August 21, the Fed kicks off its Economic Policy Symposium in Jackson Hole, Wyoming. This year’s theme is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.” Fed Chair Powell will speak, which means investors can hear what might be next for monetary policy.10 |
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World Markets |
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| The MSCI EAFE Index fell 1.45% in July, trailing all three major U.S.%.11
European markets were higher. Spain (+2.90%), France (+1.38%), and the U.K. (+3.22%) were among the best performers.11 Markets outside Europe were also mixed. Egypt (+4.56%) and Korea (+5.66%) were the leaders.11 Pacific Rim market performance was also mixed. Hong Kong (+2.91%) was the standout, followed by Japan (+1.44%). Australia also had a solid month, picking up 2.35%.11
Our blog posts are intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified financial planner before entering any financial contract. To discuss engaging the services of Fortitude Financial Planning please email us at info@fortitudefp.ie. Fortitude Financial Planning Ltd will not be held responsible for any actions taken as a result of reading these blog posts. 1. WSJ.com, July 31, 2025 2. CNBC.com, July 3, 2025 3. CNBC.com, July 7, 2025 4. CNBC.com, July 8, 2025 5. CNBC.com, July 22, 2025 6. CNBC.com, July 23, 2025 7. CNBC.com, July 29, 2025 8. CNBC.com, July 31, 2025 9. Sectorspdrs.com, July 31, 2025 10. KansasCityFed.org, 2025 11. MSCI, July 31, 2025 12. WSJ.com, July 30, 2025 13. WSJ.com, July 3, 2025 14. KPMG.com, July 17, 2025 15. Tradingeconomics.com, July 15, 2025 16. Tradingeconomics.com, July 18, 2025 17. National Association of Realtors (nar.realtor), July 23, 2025 18. Tradingeconomics.com, July 24, 2025 19. WSJ.com, July 15, 2025 20. KPMG.com, July 25, 2025 21. WSJ.com, July 30, 2025 22. NRF.com, June 2025 23. NRF.com, August 19, 2024 24. BLS.gov, 2025 25. PewResearch.org, August 25, 2023 (most recent data available) 26. AAAStateofPlay.com, October 7, 2024 |
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