Global Market Trend As Of July 25th, 2022

The market is gearing up for the Federal Reserve's highly anticipated decision on interest rates.  This week will also be characterised by another wave of corporate earnings and fresh housing and consumer data.

U.S. stocks closed in the red on Friday, with the Nasdaq declining 1.87%, the Dow Jones Industrial Average slipping 0.43% and the S&P 500 falling 0.93%.

 
Market Volatility: Despite Friday's U.S. market losses, all three indexes posted weekly gains. With a 2.5% rise for the week, the S&P 500 capped its best week in a month. Nonetheless, few investors are willing to call a bottom to a selloff that has dragged the S&P 500 down 17% this year.

Persistently high inflation, the possibility of a recession and the war in Ukraine remain at the forefront of investors' minds. Next week's meeting of the Federal Reserve, as well as coming gross domestic product data, could inject more volatility in the markets.


Market Earnings: Investors are bracing for the busiest week of the second-quarter earnings season. Twelve Dow members are scheduled to report, as well as 170 companies in the S&P 500, or just over one-third of the benchmark index.

The big focus will be the mega-cap consumer/tech titans, specifically Alphabet and Microsoft on Tuesday, Meta Platforms on Wednesday, and Apple, and Amazon on Thursday. Other names to watch include General Motors, GE, Ford, Comcast, Northrop Grumman, Charter Communications and Exxon Mobil.


Eurozone Contracting Economy: Investors continue to maintain a close eye on Europe, which has been beset by concerns about the cost of living and an energy crisis that could push economies into recession. 

On Friday, fresh business surveys suggested the eurozone economy contracted in July. Excluding pandemic lockdown months, this would mark the first contraction signaled by purchasing managers' indexes since 2013.


America first agenda summit, Monday also marks the start of the two-day America First Agenda Summit, which will address topics that include lowering energy and gasoline prices, combating historic inflation, giving parents more control of their children’s education, fighting crime and securing the U.S.-Mexico border.

Former President Donald Trump will deliver the summit's keynote address Tuesday. Other featured guests include House Minority Leader Kevin McCarthy, former House Speaker Newt Gingrich, former Administrator of the Small Business Administration Linda McMahon, former Director of the National Economic Council Larry Kudlow and former Director of White House Domestic Policy Council Brooke Rollins.