Market Digest: Trade Stress and Fed Divide hit Markets, Bitcoin Dips to 118K

Key Takeaways

The U.S. sealed a tariff deal with the EU and extended talks with China, but global sentiment remains fragile amid unresolved trade frictions.
Inside the U.S., consumer giants are raising prices to offset tariffs, while political pressure and Fed division deepen policy uncertainty.
Bitcoin hovered near 118K as optimism over regulatory clarity was clouded by broader market caution.
Gold held above 3,325 as safe-haven demand stayed firm, driven by geopolitical risks and investor focus on the upcoming Fed decision.

Geopolitics & Market Sentiment

Markets were painted red on July 30 as nearly every major sector slid under the weight of rising trade friction, geopolitical tensions, and policy uncertainty. Technology, retail, and industrials led the declines, while energy stocks and European equities showed relative strength, sending Brent crude nearly 2% higher.

Much of the market remains focused on digesting the recent U.S.-European Union trade agreement. While the deal averted a full-blown tariff escalation, European officials labeled it a “dark day”, citing the 15% levies as a major hit to key industries. Automakers were particularly affected, highlighting the real-world costs of the revised framework.

Within the United States, the economic effects of trade policy are beginning to take shape. Procter & Gamble said Tuesday it will raise prices on about a quarter of its U.S. product line to cover rising import costs, after downgrading its 2025 outlook.

Additionally, tariffs may be starting to backfire politically as well. A Reuters and Ipsos poll released Monday showed President Trump’s approval rating slipping to 40%, the lowest of his second term, with concerns over the economy and immigration weighing on public sentiment.

Adding to the pressure, President Trump issued new demands for Russia to end its campaign in Ukraine within 10 to 12 days or face expanded sanctions and secondary tariffs. The warning lifted oil prices and reinforced the sense of geopolitical unease across markets.

This wave of economic pressure is now blending with rising anxiety around the Federal Reserve.

For the first time in decades, two Fed governors, Christopher Waller and Michelle Bowman, are expected to break from the broader committee and vote in favor of a rate cut.

Waller, seen as a potential successor to Jerome Powell, has pointed to weakening labor conditions and muted inflation as reasons not to wait.

While a rate hold is still expected this week, internal disagreements and continued political pressure have made the Fed’s upcoming decision more critical. Markets will be watching Powell closely for any signal that a policy shift could arrive as early as September.

Global Indices

S&P 500: 6,370.87 (▼ 0.3%)
Dow Jones: 44,632.99 (▼ 0.46%)
Nasdaq Composite: 21,098.29 (▼ 0.38%)
Nikkei 225 Futures: 40,650.00 (▼ 0.39%)
Euronext 100: 1,598.68 (▲ 0.65%)
FTSE 100: 9,157.5 (▲ 0.19%)

Cryptocurrencies

Bitcoin (BTCUSD): 117,996 (▲ 0.06%)
Ethereum (ETHUSDT): 3,806.41 (▲ 0.33%)
Binance Coin (BNBUSDT): 799.04 (▼ 0.75%)
Solana (SOLUSDT): 180.13 (▼ 0.74%)

Commodities

Gold: 3,325.42 (▼ 0.05%)
Silver: 38.15 (▲ 0.05%)
WTI Crude: 69.22 (▲ 0.02%)
Brent Crude: 70.99 (▲ 1.99%)

Major Stocks

NVIDIA: 175.51 (▼ 0.7%)
Tesla: 321.20 (▼ 1.35%)
Microsoft: 512.57 (▲ 0.01%)
Meta: 700.00 (▼ 2.46%)
Apple: 211.27 (▼ 1.3%)
Amazon: 231.01 (▼ 0.76%)

Forex

U.S. Dollar Index (DXY): 98.408 (▼ 0.05%)
EUR/USD: 1.15498 (▲ 0.03%)
GBP/USD: 1.3348 (▲ 0.05%)
USD/JPY: 148.119 (▼ 0.22%)