MRKT Matrix Meta & Microsoft Can't Hold Up The S&P 500
Jul 31, 2025
The U.S. stock market struggles as big names like Meta and Microsoft fail to boost indices. Economic signals are mixed, raising concerns over potential Federal Reserve rate cuts and tariff effects on global trade. Microsoft reaches a milestone, becoming a $4 trillion company, reflecting strong cloud and AI demand. Meanwhile, Trump’s proposal for rebate checks is met with skepticism from Senate Republicans focused on debt reduction. In a twist, NVIDIA faces regulatory scrutiny from China, adding to technology uncertainties.
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Meta & Microsoft Can't Lift Market
- Despite strong earnings from Meta and Microsoft, the S&P 500 lost value for three days in a row.
- Other sector declines and uncertainty about Fed moves and tariffs dragged the broader market down.
Fed Faces Conflicting Economic Signals
- The Fed's preferred inflation gauge rose sharply in June, signaling persistent price pressures.
- Consumer spending barely grew, highlighting opposing economic forces influencing policy decisions.
Fed's Delicate Economic Gamble
- The Fed balances two potential outcomes: worsening economy or strong growth despite tariffs.
- Powell urges patience, warning premature rate cuts might reignite inflation, while delays risk job losses.