In July, the S&P 500 and Nasdaq hit new record highs, fueled by easing trade tensions and strong earnings. Big tech stocks led the way, while sectors like homebuilders and banks also performed well. The VIX remained calm, ending the month at 17. However, some sectors like logistics and media lagged behind.

Legislation during “Crypto Week” saw the passage of the GENIUS Act, establishing a federal regulatory framework for stablecoins. The CLARITY Act aims to clarify oversight for digital assets, while the Anti-CBDC Act prohibits the Fed from issuing CBDC. Texas also created a Bitcoin reserve. Senate approval and further developments are awaited.

Earnings season for Q2’25 has seen solid results, with EPS beating estimates in most sectors. Energy, Financials, and Communications have led positive surprises. However, Industrials had a negative surprise. Sales growth has been positive in most sectors, with Energy and Consumer Discretionary reporting contractions. Technology and Financials lead in earnings growth.

Looking ahead to August, Q2’25 earnings season will conclude, with economic data on jobs, inflation, and GDP influencing potential Fed policy changes. August historically sees mixed stock returns, with key data driving market sentiment. The economic calendar will be closely watched for further insights into market performance.

Read more at Nasdaq: July 2025 Review and Outlook