US Stock Market Today: S&P Slips from Record High, Nasdaq Down 50 Points
The US stock market witnessed a mixed trading session on Tuesday, July 29, as the S&P 500 and Nasdaq slipped from their record highs. The S&P 500 was last down 14.45 points, or 0.23%, to 6,374.98, while the Nasdaq lost 58.64 points, or 0.28%, to 21,119.59.
The Dow Jones Industrial Average fell 198.93 points to 44,638.52, or 460 points short of its record peak. The indices had hit record closes in volatile trading on Monday, aided by the US-EU trade deal that halved tariffs to 15% and increased hopes of agreements ahead of the Aug. 1 deadline.
Earnings Reports in Focus
This week is a key stretch for corporate earnings, with the ‘Magnificent Seven’ names including Meta Platforms, Microsoft, Apple, and Amazon, all set to report results on Wednesday and Thursday. Traders evaluated some mixed results on Tuesday.
Shares of Boeing were lower even after a solid earnings print as the company delivered the most airplanes since 2018. Procter & Gamble stock inched higher on a better-than-expected full-year revenue forecast and the naming of an insider as CEO.
Fed Policy Meeting in Focus
The US central bank is set to begin its two-day policy meeting. While the Fed is expected to leave rates unchanged on Wednesday, traders will closely analyze policymakers’ remarks to gauge the timing of future moves. Ahead of the US Fed policy verdict, Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said in an interview with NDTV Profit that the Fed would likely hold the key interest rates steady on July 30.
According to the CME FedWatch tool, markets are pricing in about a 63% chance of a rate cut in September. The meeting comes amid the White House’s campaign on the central bank to lower borrowing costs, including Trump’s persistent criticism of US Fed Chair Jerome Powell and occasional suggestions to remove him from his position.
Implications for Investors
The mixed trading session and the upcoming Fed policy meeting may have implications for investors. With the S&P 500 and Nasdaq slipping from their record highs, investors may be cautious about making new bets. However, the earnings reports from major US blue-chip companies may provide some direction for the market.
In the context of global trade tensions, investors will be closely watching the developments on the trade front. A settlement between the US and its trading partners could boost market sentiment, while a prolonged trade war could lead to a decline in investor confidence.