U.S. equity markets delivered a somewhat subdued, but still positive performance as investors weighed a fresh batch of corporate earnings against continued sector rotation and macroeconomic crosscurrents. Ongoing signs of economic resilience persisted, even as the large cap technology stocks diverged from broader benchmarks.
S&P 500, Dow 30, Nasdaq, and Russell Index Performance
The S&P 500 eked out a record close, rising 4.44 points (0.1%) to finish at 6,363.65, extending its streak of new highs as market breadth narrowed around leading technology names. The Nasdaq Composite added 37.94 points (0.2%) to settle at 21,057.96, with gains driven by select giants in the artificial intelligence sector. The Dow Jones Industrial Average lagged, declining 316.38 points (0.7%) to close at 44,693.91 as several blue chips pulled back after robust gains earlier in the week. The Russell 2000, reflecting small-cap stocks, dropped 31 points (1.4%) to 2,252.13, highlighting a growing performance gap between large and small caps.
Key Macroeconomic Reports
Economic data offered a nuanced portrait of growth. S&P Global’s July flash PMIs painted a picture of robust but uneven expansion. Services activity accelerated to a seven-month high, with the services PMI reaching 55.2, while manufacturing fell back into contraction territory with a reading of 49.5—its weakest since December. Inflationary pressures intensified as firms passed higher costs onto consumers. Labor Department figures revealed a further drop in initial jobless claims to 217,000, underpinning the strength of the labor market. Meanwhile, July’s PMIs indicate the economy is expanding at about a 2.3% annualized pace, up from 1.3% last quarter.
Tariffs and Trade Policy Updates
Trade and tariff issues remained a focal point, as new import tariffs—particularly on goods from Asia—provoked concerns about cost pressures but also hinted at progress in U.S.-Japan and U.S.-EU negotiations. The resulting price increases were evident in both goods and services, contributing to the upturn in inflation expectations documented in today’s surveys. Companies with significant global exposure are adjusting strategies, and analysts continue to watch trade headlines for signs of de-escalation or breakthrough deals.
Yield Curve and Interest Rate Movements
The U.S. yield curve showed little net movement, with Treasury yields steadying after recent volatility. Investors continued to price in a strong possibility of a Federal Reserve rate cut at the next FOMC meeting, with fed funds futures indicating roughly a 60% likelihood of a reduction in September. The bond market responded calmly to generally supportive macro data, and credit conditions remain accommodative for now.
FOMC Announcements
Federal Reserve officials reiterated a steady, “wait-and-see” approach, with no policy changes announced today. Messaging from the central bank emphasized the importance of further evidence of disinflation before contemplating policy moves. Market participants continue to look to the late July FOMC meeting for guidance on the path of future rates.
Sector and Stock Highlights
NVIDIA (NVDA)
NVIDIA advanced by 1.73% during the session, closing at $173.74. The firm continued to benefit from investor optimism around the ongoing AI investment wave and recently announced partnerships. Its momentum helped drive the broader tech rally, and analysts remain upbeat about NVIDIA’s ability to sustain data center growth despite occasional headlines about China-related headwinds.
Tesla (TSLA)
Tesla’s stock came under pronounced pressure, closing down 8.20% after reporting a second consecutive quarterly revenue decline—one of its toughest quarters in a decade. CEO Elon Musk cited “a few rough quarters ahead” and pointed to diminishing U.S. EV incentives as a key headwind. Production for its affordable models is expected to ramp up gradually through the next quarter, but investors remain wary of fading growth and margin pressures.
Meta Platforms (META)
Meta Platforms maintained relative stability, closing at $714.80, +.17%, as traders prepared for its imminent quarterly earnings release. The stock found foundational support at recent lows amid continued institutional buying and upbeat analyst forecasts for AI-driven revenue and profit advances in the quarter ahead.
McDonald’s (MCD, $294.48, -1.22%)
McDonald’s shares maintained their footing after recently confirming their quarterly dividend. Investors continue to view McDonald’s as a stable defensive holding, with performance bolstered by steady consumer demand and ongoing operational efficiencies.
Oracle (ORCL, $242.83, +.38%)
Oracle extended its post-earnings strength, supported by renewed analyst confidence in the company’s cloud and data analytics businesses. The stock closed modestly higher, reflecting faith in Oracle’s growth prospects and shareholder capital return strategy.
Palantir Technologies (PLTR)
Palantir shares rose .16% to close at $154.86 after its strong run over recent months. The company continues to attract bullish analyst coverage and remains a leader in government and commercial data solutions, especially where AI applications are concerned.
Rio Tinto Group (RIO)
Rio Tinto’s stock closed at $63.83, -1.22%, but have been recently boosted by institutional buying and resilience in global commodity markets. Analysts remain constructive given favorable capex discipline and improving outlook for metals demand.
Commodities and Digital Assets
Gold prices edged higher closing at $3,374.90/oz., +.04%, just below recent highs as investors recalibrated inflation expectations.
Silver prices largely tracked the senior metal, posting a +.45% gain and closing at $39.40/oz.
Crude oil prices rose +.21% to close at $66,17/bbl, supported by steady demand and cautious OPEC+ production management.
Bitcoin consolidated near the upper end of its weekly range and is trading at $118,070 at the time of this writing, buoyed by continued institutional interest in hard assets as portfolio hedges.
