The S&P 500 Index declined 2.36 percent.
The Nasdaq Composite Index declined 2.17 percent.
The Dow Jones Industrial Average declined 2.92 percent.1,2
The Bears Were Back
Stocks were broadly unchanged over the first half of the week as investors waited for more Q2 corporate results, fresh economic data, and the Fed's rate decision.
The U.S.-E.U. trade agreement announced over the weekend had a muted impact on the market as the week began. Stocks then retreated as China trade talks appeared to stall, with the Dow declining the most of the three major averages through midweek.3,4
Stocks gained on Wednesday morning after the latest gross domestic product (GDP) report showed consumer spending powered the economy back to 3 percent annualized growth in Q2. That afternoon, the Federal Reserve announced they were holding rates steady, which put some pressure on stocks.5
Selling pressure continued on July’s final trading day as investors continued to fret about the Fed’s next move. The Personal Consumption and Expenditures (PCE) Index—the Fed’s favored inflation metric—showed a June uptick in core goods prices, unsettling investors.5
Stocks were in the red from the opening bell on Friday as investors sorted through new tariff announcements from the White House, a weaker-than-expected July jobs report, and mixed Q2 corporate reports from two megacap tech names.6,7
Mixed Data Sends Mixed Signals
There was a trove of economic data for investors to sift through last week.
First, there was economic growth. While 3 percent GDP growth in Q2 is a solid step up from a 0.5 percent contraction in Q1, consumer spending largely drove the increase, offset by slower business spending—especially investment in equipment and buildings.8
The PCE report showed why the Fed remains focused on inflation. Finally, Friday's jobs report showed slower hiring in July. Jobs data from prior months were revised lower, providing additional concerns.
There shouldn't be an rate decision this month as the Fed is not scheduled to meet in August. There are three other meetings scheduled for 2025 with the next announcement scheduled for September 17th.
Economic Data To Watch
Monday:Factory Orders. Motor Vehicles Sales.
Tuesday:Trade Deficit. ISM Services Index.
Wednesday:Treasury Buyback Announcement. 10-Year Treasury Note Auction. San Francisco Fed President Mary Daly speaks.
Thursday:Productivity and Costs. Weekly Jobless Claims. Wholesale Inventories. Consumer Credit. Fed Balance Sheet. Atlanta Fed President Raphael Bostic speaks.
Friday:St. Louis Fed President Alberto Musalem speaks.
Source: Investors Business Daily - Econoday economic calendar; August 1, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
Upcoming Earnings Reports
Monday: Palantir Technologies Inc. (PLTR), Vertex Pharmaceuticals Incorporated (VRTX)
Tuesday:Advanced Micro Devices, Inc. (AMD), Caterpillar Inc. (CAT), Amgen Inc. (AMGN), Arista Networks, Inc. (ANET), Pfizer Inc. (PFE), Duke Energy Corporation (DUK)
Wednesday:McDonald’s Corporation (MCD), The Walt Disney Company (DIS), Uber Technologies, Inc. (UBER), Shopify Inc. (SHOP), AppLovin Corporation (APP), DoorDash Inc. (DASH), Brookfield Asset Management Ltd. (BAM)
Thursday:Eli Lilly and Company (LLY), Gilead Sciences, Inc. (GILD), ConocoPhillips (COP), Constellation Energy Corporation (CEG)
Source: Zacks, August 1, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Footnotes and Sources
1. WSJ.com, August 1, 2025
2. Investing.com, August 1, 2025
3. CNBC.com, July 28, 2025
4. CNBC.com, July 29, 2025
5. WSJ.com, July 31, 2025
6. MarketWatch.com, August 1, 2025
7. WSJ.com, August 1, 2025
8.WSJ.com, July 30, 2025
Source: YCharts.com, August 2, 2025. Weekly performance is measured from Monday, July 28, to Friday, August 1. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.