Global Stocks Waver as Trade Optimism Wanes, Focus Shifts to Key Economic Data and Corporate Earnings

Global stock markets are exhibiting mixed performance and heightened volatility this Tuesday, July 29, 2025, as investor sentiment navigates a landscape where initial trade relief is fading, and attention firmly turns to a flurry of crucial economic data and corporate earnings reports.

While Wall Street saw the S&P 500 and Nasdaq 100 eke out minimal gains to new record highs on Monday, supported by a fresh US-EU trade agreement, Asian markets largely dipped today. Japan’s Nikkei 225, Hong Kong’s Hang Seng, and China’s Shanghai Composite all recorded losses, while India’s Nifty50 and BSE Sensex opened flat. European markets had seen some uplift on Monday following the transatlantic trade deal, but caution pervades.

The initial optimism that buoyed markets from recent trade developments appears to be losing steam. Though the U.S. and E.U. reached a deal on reduced auto tariffs and a potential three-month extension of the US-China tariff truce is in play, significant details remain unresolved. Talks between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Sweden reportedly yielded “no major breakthroughs,” with signals that existing tariff levels could persist ahead of an August 12 deadline for a broader agreement. Adding to the unease are reports of stalled India-US trade negotiations and President Donald Trump’s hawkish stance, including threats of additional tariffs related to the Ukraine conflict and specific tariffs on pharmaceuticals.

“There are more headwinds than tailwinds for the market now,” commented VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, citing the uncertainty surrounding trade deals.

Investors are now keenly awaiting a wave of economic indicators and corporate results that could dictate market direction. A major event this week is the Federal Reserve’s interest rate decision on Wednesday, July 30, 2025, where Wall Street largely anticipates the central bank will delay any rate cuts until September. Also on Wednesday, the U.S. Gross Domestic Product (GDP) Advance Estimate for the second quarter of 2025 will provide a crucial snapshot of economic health. Other key data points include Personal Income and Outlays for June and upcoming trade figures. The International Monetary Fund (IMF) is also set to release its World Economic Outlook Update today, which could further influence global sentiment.

The second-quarter earnings season is in full swing, with nearly a third of S&P 500 companies scheduled to report this week. Tech giants like Meta Platforms, Microsoft, and Apple are among the high-profile companies slated to release their results by week’s end, alongside industrial heavyweights such as Boeing, Procter & Gamble, and energy majors Chevron and Exxon Mobil next week. While strong corporate profits are crucial to justify recent market rallies, some analysts remain skeptical about elevated valuations without corresponding earnings growth. Mixed results have already been observed, with Nucor’s steel earnings down significantly year-over-year, and Revvity’s shares plunging despite beating quarterly estimates due to a disappointing full-year forecast.

As trade uncertainties persist and the market digests a deluge of fundamental data, analysts suggest a “wait and watch” mode, advising caution as investors seek clearer signals on economic trajectory and corporate performance.