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U.S. Stocks Rise Ahead of Federal Reserve Meeting and Key Economic Data

The S&P 500 and Nasdaq rise as investors react positively to strong earnings from Microsoft and Meta, while awaiting reports from Apple and Amazon.

Summary

U.S. stocks rose on July 31, 2025, with the S&P 500 gaining 0.9% and the Nasdaq up 1.3%, buoyed by strong earnings from Meta and Microsoft. The Dow Jones increased by 112 points. Investors are optimistic for further gains as Apple and Amazon prepare to report earnings. Trade deals, including a significant agreement with South Korea, have also contributed to positive sentiment, despite concerns over rising inflation indicated by the June core PCE data, which rose 0.3% month-on-month and 2.8% year-on-year.

Terms & Concepts
  • core PCE: The Personal Consumption Expenditures price index excluding food and energy, used by the Federal Reserve to measure inflation.
  • Big Tech: A term referring to the largest and most dominant technology companies, including Microsoft, Apple, Amazon, and Meta.
  • inflation gauge: A statistical measure used to assess the rate at which the general level of prices for goods and services is rising.