In July, stock markets saw strong gains with the S&P 500 and Nasdaq hitting new record highs. Big tech stocks led the way, while sectors like homebuilders and banks also performed well. Trade deals with the EU and Japan boosted market sentiment, despite mixed economic data and a steady rate decision from the FOMC.

Crypto legislation took center stage during “Crypto Week” with the passage of the GENIUS Act and CLARITY Act. The GENIUS Act establishes a federal regulatory framework for stablecoins, while the CLARITY Act aims to resolve jurisdictional disputes for digital assets. Texas also made history by creating a state-managed Bitcoin reserve.

Earnings season kicked off with strong results, as over 60% of S&P 500 companies beat EPS estimates. Energy and Financial sectors led positive surprises, while Technology showed strong growth. Sales and earnings growth were above average, with most sectors reporting positive results. Tariffs, Generative AI, and Fed rate cut odds were key topics in earnings calls.

Looking ahead to August, markets will focus on the conclusion of earnings season, economic data releases, and potential policy changes by the Federal Reserve. August historically has mixed returns, with economic indicators driving market direction. Investors should stay informed and consult with a securities professional for investment advice.

Read more at Nasdaq: August 2025 Review and Outlook