Record Highs in Stocks Continued in July

Highlights include:

• July 2025 delivered a solid month for U.S. equities. The S&P 500 Index, an index comprised of the 500 largest U.S. companies by market capitalization, rose 2% and the technology-heavy Nasdaq Composite Index rose nearly 4%.
• Notably through July 28, the Nasdaq has climbed 21 of the past 25 trading days, which is the most in a 25-year period since 2000.¹
• Optimism around U.S. trade deals with several countries, including the European Union and Japan, lifted investor sentiment and helped resolve some of the tariff uncertainty.
• Strong earnings also helped power the market to new highs. As of July 25, about one-third of S&P 500 companies have reported results for the second quarter, and of these companies, 80% have reported higher earnings than analysts’ estimates.²
• At the end of July, the Federal Reserve decided to keep the fed funds rate at its current level, marking the fifth consecutive meeting with no rate change. The Fed emphasized potential inflation risks and healthy employment data. Expectations for a September rate cut dipped below 50% before Fed Chairman Powell’s remarks and dropped further after a stubborn inflation report. However, a weaker-than-expected U.S. jobs report on August 1^st sent rate cut expectations soaring to over 80%.

¹ Barron’s, 7/28/25
² FactSet Insight, 7/25/25.

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Katharine E.W. Dudley, AIF^®
Senior Vice President, Client Advisor

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