S&P 500 Up 0.3% Nasdaq Gains 0.5% Ahead of Fed Meeting Key Earnings Reports

U.S. stocks advanced on Tuesday as investors navigated a critical juncture ahead of the Federal Reserve’s policy meeting and key economic data releases. The S&P 500 gained 0.3%, the Nasdaq rose 0.5%, and the Dow added 20 points, with all major indices trading near record levels. The cautious optimism reflected a mix of corporate earnings strength, upcoming central bank guidance, and evolving trade dynamics [1].

Corporate earnings played a pivotal role in shaping market sentiment. Boeing Co. (BA) led early gains with Q2 revenue of $22.7 billion, surpassing the $21.68 billion estimated by analysts. The result underscored resilience in key sectors ahead of the earnings calendar, which will soon feature reports from major technology firms including Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Meta Platforms Inc. (META). These quarterly updates will likely influence the broader market trajectory in the coming week [1].

The Federal Reserve’s two-day policy session, beginning July 29, remains a focal point for investors. While no rate hike is anticipated, the central bank’s statements will be scrutinized for clues about future monetary policy amid a robust economic expansion. Market participants are particularly attentive to whether policymakers hint at a shift in stance, given the strong second-quarter economic rebound and resilient labor market indicators. The June Job Openings and Labor Turnover Survey (JOLTS) and the upcoming nonfarm payrolls report on Friday will further shape the narrative [1].

Trade policy developments also provided tailwinds. Markets reacted positively to recent U.S. trade agreements with the European Union and Japan, which signaled potential easing of tensions. Attention is now fixed on August 1, the deadline for ex-President Donald Trump’s proposed tariffs on U.S.-China trade, and the expiration of the current trade truce on August 12. Analysts suggest that any escalation in tariffs could introduce volatility, while a prolonged truce would likely bolster risk appetite [1].

A separate economic report highlighted the U.S. goods trade deficit narrowing by 10.8% in June to $86.0 billion, driven by a $11.5 billion decline in imports. Exports fell modestly to $178.2 billion. The improvement aligns with analysts’ forecasts and reinforces the narrative of a strong second-quarter economic rebound. However, the report’s impact on market direction remains secondary to the Fed’s upcoming decisions and labor data releases [1].

Source: [1] S&P 500 Rises Ahead of Fed Meeting and Key Economic Data (https://btc-pulse.com/sp-500-rises-ahead-of-fed-meeting-and-key-economic-data/)