U.S. equities experienced a slight pullback on Tuesday, July 29, 2025, as major indexes retreated from recent record highs, with investors digesting a mixed bag of corporate earnings and bracing for a pivotal Federal Reserve policy decision. While early futures pointed to modest gains, the market's cautious sentiment ultimately led to a decline across the board for the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average by the close of trading. This comes after a six-day streak of record closes for the S&P 500 and a four-session winning run for the Nasdaq.
Performance Recap: Indexes Edge Lower
On Tuesday, the S&P 500 (SPX) fell 0.3%, snapping its impressive six-day streak of record closing highs. The tech-heavy Nasdaq Composite (IXIC) also saw a decline, slicing 0.4% off its own record. The Dow Jones Industrial Average (DJI) dropped 204 points, or 0.5%. This cautious trading day reflects a market taking a breather after a strong rally fueled by robust corporate results and easing trade tensions.
Key Market Events Ahead
The week remains packed with high-impact events that could significantly influence market direction. The most anticipated is the Federal Reserve's two-day policy meeting, which commenced on Tuesday and concludes with an announcement on Wednesday. While the central bank is widely expected to hold interest rates steady between 4.25% and 4.5%, investors will be scrutinizing Chair Jerome Powell's press conference for any shifts in tone regarding inflation and the potential for future rate cuts later in the year.
Beyond the Fed, a slew of economic data releases is scheduled. On Tuesday, key reports included June's JOLTS job openings, July's Conference Board consumer confidence, and May's S&P CoreLogic Case-Shiller home prices. Looking ahead to Wednesday, investors await the ADP private payrolls report and the crucial Q2 GDP estimate, with expectations for U.S. GDP growth around 2.4%. Thursday will bring the latest weekly jobless claims, and Friday will feature the closely watched July nonfarm payrolls report, which is forecasted to show 100,000 jobs added and an unemployment rate of 4.2%. These indicators will provide further clarity on the health and trajectory of the U.S. economy.
Global trade developments also remain a significant focus. Following Monday's announcement of a new U.S.-EU trade deal, which imposes a 15% tariff on most European imports, U.S. and Chinese officials resumed trade talks on Tuesday. A lasting tariff agreement between the two economic giants is crucial as an August 12 deadline looms.
Corporate Earnings and Stock Highlights
The earnings season continues to be a major driver of individual stock movements, with over 150 S&P 500 companies slated to report this week. So far, approximately 83% of companies have surpassed earnings expectations, according to FactSet.
Several notable companies reported earnings either after Monday's close or before Tuesday's market open, leading to significant price action.
Companies Reporting Before Tuesday's Open:
- Procter & Gamble (PG) announced its fiscal fourth-quarter results, reporting earnings of $1.48 per share, a 17% year-over-year increase, on revenue of $20.9 billion, which rose 2%. Both figures beat analyst estimates.
- UnitedHealth Group (UNH) saw its shares drop 7.5%, making it a leading decliner on the Dow, after providing a disappointing profit forecast and cutting its 2025 adjusted EPS outlook.
- Merck (MRK) declined about 2% following its earnings report.
- Boeing (BA) shares fell approximately 4% despite reporting better-than-expected sales and a reduced second-quarter loss, with revenue jumping 35% year-over-year to $22.75 billion.
- Spotify (SPOT) shares were down 10% on Tuesday.
- UPS (UPS) plunged more than 10% after its quarterly profit fell short of analysts' estimates.
- SoFi Technologies (SOFI) rallied, jumping over 7% by late Tuesday trading, after rising nearly 20% earlier in the session following its quarterly results.
Other Major Stock News on Tuesday:
- Sarepta Therapeutics (SRPT) surged around 35% following FDA approval to resume shipments of its gene therapy drug Elevidys.
- In the tech sector, Alphabet (GOOGL) shares gained 1.6%, and Broadcom (AVGO) tacked on about 1%. Microsoft (MSFT) also ticked higher.
- Conversely, Meta Platforms (META) finished the day 2.5% lower, while Apple (AAPL) and Tesla (TSLA) each fell more than 1%. Nvidia (NVDA) posted modest declines, with reports indicating it ordered 300,000 H20 chips from contract manufacturer TSMC (TSM) due to strong demand in China.
- Specialized glassmaker Corning (GLW) surged 12%, leading advancers in the S&P 500.
- Novo Nordisk (NVO) tumbled 22% after the weight loss treatment maker issued a disappointing outlook and named a new CEO.
- In a significant corporate announcement, Union Pacific (UNP) agreed to acquire fellow rail giant Norfolk Southern (NSC) for $85 billion.
As the week progresses, investors will continue to monitor corporate earnings, economic data, and the Federal Reserve's commentary for further cues on market direction. The mixed performance on Tuesday suggests a period of consolidation as the market digests recent gains and anticipates key policy signals.
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.