Markets Dip After Data-Heavy Week:
Stocks declined last week as investors parsed fresh economic data, monitored new trade developments out of Washington, and continued to contemplate the Fed’s next move.
The S&P 500 Index fell 2.36%, while the Nasdaq Composite Index declined 2.17%. The Dow Jones Industrial Average dropped 2.92%. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 2.95%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 7/25/25 = 0)
Action-Packed Week
Stocks largely went sideways over the first half of the week as investors waited for more Q2 corporate results, fresh economic data, and the Fed decision.
The U.S.-E.U. trade agreement announced over the weekend had a muted impact on the market as the week began. Stocks then retreated as China trade talks appeared to stall, with the Dow declining the most of the three major averages through midweek.3,4
Stocks gained on Wednesday morning after the latest gross domestic product (GDP) report showed consumer spending powered the economy back to 3% annualized growth in Q2. That afternoon, the Federal Reserve announced they were holding rates steady, which put some pressure on stocks.5
Selling pressure continued on July’s final trading day as investors continued to fret about the Fed’s next move. The Personal Consumption and Expenditures (PCE) Index—the Fed’s favored inflation metric—showed a June uptick in core goods prices, unsettling investors.5
Stocks were under pressure from the opening bell on Friday as investors sorted through fresh tariff announcements from the White House, a softer-than-expected July jobs report, and mixed Q2 corporate reports from two megacap tech names.6,7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Mixed Economic Signals
There was a trove of economic data for investors to parse last week.
First, there was economic growth. While 3% GDP growth in Q2 is a solid step up from a 0.5% contraction in Q1, consumer spending largely drove the increase, offset by slower business spending—especially investment in equipment and buildings.8
The PCE report showed why the Fed remains focused on inflation. Finally, Friday’s jobs report pointed to a slowdown in hiring in July. A bit more concerning was that the jobs data from prior months were revised lower.
The Fed has no meeting in August, with three other meetings scheduled for 2025.
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, August 1, 2025
2Investing.com, August 1, 2025
3CNBC.com, July 28, 2025
4CNBC.com, July 29, 2025
5WSJ.com, July 31, 2025
6MarketWatch.com, August 1, 2025
7WSJ.com, August 1, 2025
8WSJ.com, July 30, 2025
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