The U.S. stock market concluded a dynamic week on Friday, July 25, 2025, with the S&P 500 and Nasdaq Composite achieving new record closing highs, driven by robust corporate earnings and cautious optimism surrounding potential Federal Reserve policy and ongoing trade negotiations. The Dow Jones Industrial Average also posted gains, inching closer to its December 2024 all-time high. Investors navigated a mixed bag of economic data and significant corporate announcements, setting the stage for a critical week ahead.
Market Performance Recap
On Friday, the S&P 500 (SPX) advanced, closing at a new record high, its fifth such record this week. The index added between 0.1% and 0.4% on the day, reflecting underlying confidence in the U.S. economy and corporate resilience. Similarly, the tech-heavy Nasdaq Composite (IXIC) continued its upward trajectory, rising between 0.1% and 0.3% to also mark a fresh all-time closing high. The Dow Jones Industrial Average (DJI) climbed by 0.4% to 0.7%, positioning itself within striking distance of its previous record. All three major indexes registered more than a 1% gain over the course of the week.
Sector-wise, the market saw varied performance. The Consumer Discretionary Select Sector SPDR (XLY) and the Materials Select Sector SPDR (XLB) were among the top performers, advancing by 1.7% and 1% respectively. Conversely, the Energy Select Sector SPDR (XLE) experienced a decline of 0.7% on the day. The CBOE Volatility Index (VIX), often referred to as the "fear gauge," ticked up slightly by 0.1% to 15.39. Total trading volume was high, with 19.9 billion shares traded, exceeding the last 20-session average.
Post-Market Earnings and Key Corporate News
While the market closed, several companies had already made headlines with their earnings reports or significant corporate announcements. Clorox (CLX) was among the companies expected to report its earnings after the market close on Friday.
Earlier in the week and impacting Friday's trading, Intel (INTC) shares tumbled nearly 9% after the chipmaker reported an unexpected loss in the second quarter, intensifying its restructuring efforts. This news comes as the tech industry faces significant workforce reductions, with Intel leading the pack, having cut over 12,000 positions in 2025, contributing to a total of 100,000 tech industry layoffs this year.
In contrast, Alphabet Inc. (GOOGL) (Google's parent company) posted strong second-quarter 2025 earnings, beating analyst expectations with a 22.2% year-over-year growth in earnings per share and a 13.8% increase in revenues. Electric vehicle manufacturer Tesla Inc. (TSLA) also reported second-quarter earnings per share that topped consensus estimates, although its production declined year-over-year. Tesla's stock, which had fallen sharply yesterday after disappointing results, rebounded with a 3.5% gain on Friday.
Other notable earnings included ServiceNow Inc. (NOW), which reported adjusted earnings of $4.09 per share, beating estimates by over 15%, and a 22.4% increase in revenues. Footwear company Deckers Outdoor (DECK), the owner of popular brands like UGG and Hoka, saw its shares jump 11% after reporting stronger-than-expected first-quarter fiscal 2026 profit and sales, along with solid guidance. Miner Newmont (NEM) also saw its stock pop by nearly 6% as its second-quarter earnings surpassed expectations, bolstered by high gold prices.
In other corporate news, U.S. regulators cleared the merger between Paramount (PARA) and Skydance Media. Additionally, major tech players like Apple (AAPL) and Nvidia (NVDA) have announced massive investment plans in the U.S., with Apple committing $500 billion and Nvidia planning up to $500 billion over the next four years for AI infrastructure.
Upcoming Market Events and Economic Outlook
The coming week is poised to be pivotal for the markets, with several key economic data releases and policy decisions on the horizon. The Federal Reserve's Federal Open Market Committee (FOMC) is scheduled to hold its next meeting from July 29-30, 2025. While no interest rate cut is anticipated at this meeting, investors will closely scrutinize Fed Chair Jerome Powell's press conference on July 30 for clues on future monetary policy, particularly concerning the impact of tariffs on inflation. Current inflation data shows the Consumer Price Index (CPI) climbed to 2.7% in June, partly influenced by tariffs.
Key economic data announcements next week include the advance estimate for Gross Domestic Product (GDP) for the second quarter of 2025 on July 30, and Personal Income and Outlays for June 2025 on July 31. The U.S. International Trade in Goods and Services for June 2025 is set for release on August 5. Recent economic indicators have been mixed, with durable goods orders tumbling in June, though services activity showed an increase in July. The housing market also presented a mixed picture, as existing home sales fell to a nine-month low in June, while new home sales edged higher.
Trade policies remain a significant factor, with an August 1 deadline looming for the implementation of hefty tariffs. While deals have been reached with Japan, Indonesia, and the Philippines, negotiations with Canada have stalled. President Trump is also scheduled to meet with European Commission President Ursula von der Leyen on Sunday, with hopes for a U.S.-EU trade agreement. The ongoing uncertainty around tariffs continues to influence economic forecasts and corporate outlooks.
The second-quarter earnings season is in full swing, with the peak expected between July 28 and August 15. Major technology and communication services companies are anticipated to report strong earnings, which could continue to buoy market sentiment, despite a broader deceleration in earnings growth for the S&P 500. Investors will be keenly watching for guidance from these companies, as forward-looking commentary remains crucial amidst policy uncertainties.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.