What Happened Last Week | July 23, 2025

The S&P 500 declined 0.15 percent, the Nasdaq gained 0.21 percent and the Dow Jones Industrial Average was mostly unchanged (+0.02 percent).^1,2

Financial Markets Digest Impactful News

Stocks opened higher, and oil prices fell at the start of the week as investors hoped Middle Eastern tensions would ease.³

However, as investors parsed through updates on the conflict, stocks fell over ongoing uncertainty. Conflicting statements from those involved, as well as from world leaders, contributed to the uncertainty.⁴

Midweek, stocks rallied ahead of the Fed's interest rate decision. Markets seemed to dismiss news that housing starts dropped unexpectedly to their lowest level in five years.

The Fed held short-term rates steady. Stocks moved up and down during the Fed Chair’s press conference before ending the trading session slightly down ahead of Thursday’s stock market holiday.⁵

Following the holiday, anxious investors refocused on geopolitical tensions and developments. As the week closed out, investors appeared to take a risk-off approach heading into the weekend.⁶

To Cut Or Not To Cut

As expected, the Federal Reserve kept the Fed funds rate at its target range of 4.25 percent and 4.5 percent. However, the central bank did suggest it may adjust rates later this year, and policymakers expressed concerns about inflation and the outlook for gross domestic product.

Following the decision, Fed Chair Powell said policymakers are “well positioned to wait” before moving on short-term rates. Powell indicated that trade policy has clouded the inflation outlook, making policymakers concerned about consumer prices.^7,8

Economic Data To Watch

Monday: Manufacturing and Services PMI. Existing Home Sales.

Tuesday:S&P Case-Shiller Home Price Index. Cleveland Fed President Beth Hammack speaks. Consumer Confidence. Fed Chair Powell Testifies to House Financial Services Committee.

Wednesday: New Home Sales.

Thursday: Gross Domestic Product (GDP). Retail & Wholesale Inventories. Trade Balance. Durable Goods. Cleveland Fed President Beth Hammack speaks. Pending Home Sales.

Friday: Personal Consumption & Expenditures (PCE) Index. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; June 20, 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

Tuesday:  FedEx Corporation (FDX)

Wednesday:  Micron Technology, Inc. (MU), Paychex, Inc. (PAYX)

Thursday:  NIKE, Inc. (NKE)

^{Source: Zacks, June 20, 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, June 20, 2025}

^{2. Investing.com, June 20, 2025}

^{3. MarketWatch.com, June 16, 2025}

^{4. CNBC.com, June 17, 2025}

^{5. WSJ.com, June 18, 2025}

^{6. CNBC.com, June 20, 2025}

^{7. MarketWatch.com, June 16, 2025}

^{8. WSJ.com, June 18, 2025}

^{Source: YCharts.com, June 21, 2025. Weekly performance is measured from Friday, June 13, to Friday, June 20. 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.}