Global equities declined on Tuesday as investors awaited earnings reports from megacap companies and the Federal Reserve’s next policy decision. Oil prices soared by over $2 after US Treasury Secretary Scott Bessent said China could face high tariffs if it continues to buy oil from Russia.
The dollar advanced against the euro, which hit its lowest point since June 23, as investors sobered up to a new US-EU trade deal that favors the US. The US has threatened China with higher tariffs and other measures on Russia if Moscow does not make progress toward ending the war in Ukraine.
While traders were preparing for inflation and payroll reports, they were also waiting for the Fed’s policy statement and commentary due on Wednesday afternoon. The central bank is expected to keep interest rates steady, pending more clarity on the impact of tariffs on inflation.
“Trading is biased to the upside, but given the barrage of information coming in over the next couple days, traders and investors are going to be a little bit hesitant,” said Anthony Saglimbene, chief market strategist at Ameriprise. He pointed to signs of pressure from tariffs in quarterly results, such as United Parcel Service’s report on Tuesday.
The S&P 500 snapped six sessions of gains, falling 18.91 points, or 0.30%, to 6,370.86. The Nasdaq Composite saw its first daily loss in five trading days, falling 80.29 points, or 0.38%, to 21,098.29. Oil prices rose, with US crude settling up 3.75% or $2.50 at $69.21 a barrel.
In other markets, the euro was down 0.31% at $1.1552, and the dollar index rose 0.27% to 98.88. In currencies, the Japanese yen weakened 0.04% to 148.47. The yield on benchmark US 10-year notes fell 9.8 basis points to 4.322%.
Source: https://www.reuters.com/world/china/global-markets-wrapup-7-graphics-2025-07-29