Why are stocks crashing down

The stock market experienced a downturn from July 24 to July 31, 2025, as indicated by the SPY ETF's percentage change falling from 0.85% to -0.38% over this period. Several factors contributed to this decline:

1. **Federal Reserve's Stance on Interest Rates**: Fed Chair Jerome Powell's speech at the July FOMC meeting highlighted the central bank's data-dependent approach to interest rates, which was interpreted as a lack of clarity on rate cuts. This uncertainty weighed on investor sentiment and contributed to the market's volatility.
2. **Disappointing Corporate Earnings**: A slew of disappointing earnings reports from major companies, such as UnitedHealth Group, United Parcel Service, and Whirlpool Corporation, hit investor confidence. These reports led to downward revisions in full-year profit outlooks and increased selling pressure on shares.
3. **Trade and Tariff Concerns**: The market's sensitivity to trade-related developments was evident, with the U.S.-EU trade deal causing some unease. The agreement included a 15% tariff hike, which could have implications for growth and inflation. Additionally, ongoing trade tensions and the reality of high tariffs were factors that kept investors cautious.
4. **Geopolitical Tensions**: The tone of Powell's speech also touched on global uncertainties, particularly around China and geopolitical tensions. These factors added to the cautious atmosphere and reinforced concerns about the outlook for monetary policy and economic growth.

In summary, the stock market's decline was likely a result of a combination of factors including Federal Reserve's stance on interest rates, disappointing corporate earnings, trade and tariff concerns, and geopolitical tensions.

|code|Ticker|Name|Date|Percentage Change|market_code|
|---|---|---|---|---|---|
|SPY|SPY.P|SPDR S&P 500 ETF Trust|20250725|0.422433|169|
|SPY|SPY.P|SPDR S&P 500 ETF Trust|20250728|-0.025114|169|
|SPY|SPY.P|SPDR S&P 500 ETF Trust|20250729|-0.263761|169|
|SPY|SPY.P|SPDR S&P 500 ETF Trust|20250730|-0.125933|169|
|SPY|SPY.P|SPDR S&P 500 ETF Trust|20250731|-0.375122|169|
|SPY|SPY.P|SPDR S&P 500 ETF Trust|20250801|-0.3751221511206373|169|