Stock Market Update: S&P 500 Ends Winning Streak Amid Fed Speculation

The U.S. stock market faced a notable shift on Tuesday, July 29, 2025, as the S&P 500 index concluded its recent winning streak, which had seen it reach record highs. This development occurred amidst a backdrop of mixed earnings reports and anticipation surrounding the Federal Reserve’s imminent interest rate decision. As of Tuesday evening, futures for the S&P 500 and Nasdaq 100 remained relatively unchanged, while Dow Jones Industrial Average futures dipped by 41 points, or 0.1%. The day’s trading reflected a broader uncertainty in the market, particularly following an inconclusive round of trade negotiations between U.S. officials and their Chinese counterparts.

In a statement from the Federal Reserve, officials indicated they would likely maintain the current interest rate between 4.25% and 4.5%, a sentiment echoed by Jerry Tempelman, Vice President of Fixed Income Research at Mutual of America Capital Management. Tempelman noted, "Despite increased political scrutiny, Fed Chair Jerome Powell continues to signal patience around any interest rate decision." This level of uncertainty has kept investors on edge, especially with the Fed set to announce its decision on Wednesday afternoon.

Starbucks emerged as a standout in after-hours trading, with shares soaring over 3% after the coffee chain reported stronger-than-expected revenue of $9.46 billion for its third fiscal quarter, surpassing consensus estimates from LSEG, which projected $9.31 billion. However, the company faced challenges with same-store sales declining for the sixth consecutive quarter.

Conversely, Visa experienced a downturn, with shares dropping more than 2%. Despite reporting quarterly results that beat Wall Street’s expectations, Visa affirmed its full-year 2025 guidance, predicting low double-digit net revenue growth. The financial technology giant reported adjusted earnings of $2.98 per share on revenue of $10.17 billion, exceeding analyst forecasts of $2.85 per share and $9.84 billion in revenue.

Additionally, Mondelez International, the maker of popular snacks such as Oreo cookies, saw its stock tumble nearly 3%, despite a second-quarter performance that exceeded Wall Street estimates. The company reaffirmed its full-year guidance, anticipating a 10% decline year-over-year in earnings per share on a constant currency basis.

Looking ahead, traders will continue to monitor economic indicators, including private payrolls, gross domestic product (GDP), and pending home sales scheduled for release before the Fed’s announcement. Key earnings reports are also expected from notable companies such as Etsy, Meta Platforms, Microsoft, Ford, and Robinhood, all of which could impact market sentiment.

As analysts dissect the implications of the Fed’s forthcoming decision and the fluctuating trade dynamics with China, the outlook for the stock market remains cautiously optimistic, albeit tempered by current uncertainties. "The market is in a wait-and-see mode, and the upcoming Federal Reserve meeting will be critical for guiding investor sentiment moving forward," concluded Tempelman.