Wall Street Eases Off Highs as Earnings Disappoint and Fed Decision Looms
Stocks slip after six-day winning streak, with major names missing earnings and the Fed poised to deliver key policy signals.
New York, July 29 EST: Stock Market Earnings July 2025, after nearly two weeks of steady gains, U.S. equities finally hit the brakes Tuesday. The S&P 500, Nasdaq, and Dow Jones all pulled back modestly, as corporate earnings came in softer than expected and traders looked ahead to the Federal Reserve’s policy update.
The SPDR S&P 500 ETF Trust (SPY) finished the day at $635.48, down slightly but notable given the backdrop. The ETF had opened higher, but sellers stepped in by mid-morning and kept pressure on through the close. Volume was heavy at nearly 40 million shares, underscoring the market’s current sensitivity to downside surprises.
Big Names Miss, and Investors Take Note
It wasn’t just that companies missed estimates. It was who missed and how.
UnitedHealth posted weaker-than-expected profits and revised its full-year guidance downward. That’s the kind of stock investors lean on in uncertain markets. When the stable names start wobbling, it catches attention.
UPS took the biggest hit, plunging almost 10% after failing to hit earnings targets and choosing not to offer 2025 guidance. For a logistics company that operates on thin margins and precise forecasts, silence is rarely taken well.
Merck lost ground as well, dropping more than 3% after announcing a restructuring and missing revenue targets in key divisions. But it was Novo Nordisk that really sent shockwaves. The drugmaker slashed its full-year sales outlook for its GLP-1 weight-loss treatments one of the market’s most crowded trades. The stock collapsed over 20%, dragging peers and raising questions about pricing power in the sector.
The message across the board: expectations have been reset. This market is no longer giving companies the benefit of the doubt.
Pockets of Strength, But Not Much Follow-Through
There were some winners. SoFi Technologies popped more than 8% after beating on revenue and lifting its forecast. Sarepta Therapeutics also rallied following news that U.S. shipments of its gene therapy treatment, Elevidys, had resumed.
But these were exceptions in an otherwise cautious tape. Breadth was negative, and risk appetite remained limited outside a handful of growth names.
Fed Meeting Looms Large
Tuesday also marked Day One of the Federal Reserve’s July policy meeting. Rates are expected to hold steady at 4.25%–4.50%, but what Chair Jerome Powell says Wednesday afternoon will matter far more than the decision itself.
Investors want clarity on whether a fall rate cut is still on the table or if the central bank sees enough strength in the economy to wait it out. Inflation has come down, but not in a straight line. And the Fed doesn’t like surprises.
Any hint of hawkishness could pressure yields higher and reprice equities, especially after the rally we’ve seen since May.
Trade Policy Returns to the Fore
In the background, trade tensions are bubbling back up. A new U.S.–EU agreement trimmed tariffs to 15% in key sectors, a rare piece of good news. But talks with China remain unresolved, with an August 12 deadline looming over existing tariff agreements.
There’s a growing belief among traders that any threat of renewed tariffs particularly in an election year may be more theater than policy. But until something concrete is signed, the uncertainty is enough to keep global equities on edge.
Outlook: A Critical Stretch Ahead
Tuesday’s decline wasn’t severe, but it was the first real sign that this rally is fragile and highly dependent on mega-cap earnings and dovish policy.
This week alone, over 150 S&P 500 companies are reporting results, including Apple, Amazon, Meta, and Microsoft. These four names account for nearly 20% of the index. If they stumble, the market doesn’t have many places left to hide.
Meanwhile, key economic indicators including job openings, consumer confidence, core PCE inflation, and non-farm payrolls are due before Friday. Each one could shift the Fed’s calculus, and by extension, the market’s path.
For now, Wall Street is taking a breath. But the next few days will determine whether it’s just catching it or starting to lose it.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
