📰 Market Outlook – Tuesday, July 29, 2025

🔍 What’s Driving Markets Today

1. U.S.–EU Trade Deal Strengthens Dollar
The newly finalized trade framework between the U.S. and EU—capping tariffs at 15% and boosting U.S. energy and defense sales—propelled the dollar to its best week since May. That strength is adding pressure to gold and commodities but helping fund bond demand domestically.Reuters

2. Fed Meeting Underway
The Federal Reserve has kicked off its two-day policy session with no rate change expected. Markets are eyeing Chair Powell’s Wednesday comments for any shift on rate-cut expectations, particularly since inflation recently ticked higher.Kiplinger+2Financial Times+2

3. Trade Talks and Earnings in Focus
U.S.–China trade talks resumed today in Stockholm with negotiators discussing a tariff truce extension, while Nasdaq and Dow futures are edging higher into earnings from Big Tech companies later this week.stl.news+8wsj.com+8Reuters+8

4. Emerging Markets Continue to Outperform
Emerging markets outpaced U.S. equities by a wide margin this year—MSCI EM is up 18% vs. S&P’s pace—and strategists believe further opportunity lies ahead in areas like China and Latin America.Barron’s

🔭 What to Watch Today

• Fed Chair Press Conference (2 PM ET): Clarity on rate outlook and inflation tolerance could move both bonds and equities.

• Trade Truce Update: Any extension of the U.S.–China tariff agreement could stabilize global sentiment further.

• Big Tech Earnings Kickoff: Outlook comments from Meta, Amazon, and Alphabet may drive near-term equity direction.

Today’s market environment balances cautious optimism—buoyed by trade progress and EM strength—with watchfulness around Fed commentary and earnings.