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Dow Jones Fails at ATH Ahead of Key Events – Can Support Hold Djia?
U.S. stocks ended lower Tuesday as early strength faded, with the Dow Jones pulling back just below record highs amid rising caution ahead..
Written by:
Skerdian Meta
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Tuesday, July 29, 2025
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3 min read
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Last updated: Wednesday, July 30, 2025
Quick overview
- U.S. stocks ended lower on Tuesday, with the Dow Jones Industrial Average slipping nearly 0.5% as caution grew ahead of key economic and earnings events.
- The broader market also declined after an initial strong start, reflecting investor hesitance amid inflation concerns and mixed corporate earnings.
- Notable declines were seen in sectors such as fintech, travel, and tech, with small-cap stocks particularly underperforming.
- Upcoming economic data and earnings reports from major companies are expected to influence market direction in the coming days.
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U.S. stocks ended lower Tuesday as early strength faded, with the Dow Jones pulling back just below record highs amid rising caution ahead of key economic and earnings events.
Dow Slips as Markets Lose Steam After Record Run
The Dow Jones Industrial Average lagged behind on Tuesday, ending the day down nearly 0.5% at 44,633, while failing to break through its record highs. The broader market also turned lower after a strong start, with both the NASDAQ and S&P 500 hitting fresh intraday peaks in the morning before fading into the red by the close.
Despite the modest size of the declines, the underlying sentiment was one of caution. Investors were reluctant to push higher amid a backdrop of inflation-related worries, ongoing earnings uncertainty, and concerns about a global economic slowdown. The Russell 2000 also posted one of the steepest declines, reflecting risk-off behavior among small-cap investors.
Dow Jones Chart Daily – Can the 20 SMA Hold As Support Again?
The Dow’s underperformance was particularly notable. While prices remained just beneath all-time highs and the 20-day simple moving average continued to offer support on the charts, broader headwinds held back momentum. A lack of progress in U.S.–China trade negotiations, soft industrial earnings, and unresolved labor issues weighed heavily on the index’s heavyweights, further stalling its breakout attempt.
Sentiment Clouded by Upcoming Macro Triggers
The muted tone was not without reason. The market is facing a packed economic calendar and several potential catalysts. Investors are bracing for the Federal Reserve’s latest interest rate decision, set to be released Wednesday, followed by second-quarter GDP figures on Thursday. Adding to the mix are eagerly awaited earnings from major tech players, including Amazon, Apple, Meta, and Microsoft, all of which could heavily sway market direction.
To close out the week, the U.S. monthly jobs report is due Friday, which could add further volatility. With such a concentration of critical data and corporate updates on the horizon, many traders opted for a wait-and-see stance rather than betting on continued upward momentum.
US Major Indices Finish Lower Across the Board
- Dow Jones Industrial Average fell by 204.57 points (-0.46%), closing at 44,632.99, dragged by weakness in industrials and renewed uncertainty around labor and earnings outlooks.
- S&P 500 Index lost 18.91 points (-0.30%), ending at 6,370.86, pressured by broad-based losses in fintech, travel, and tech names.
- NASDAQ Composite Index declined 80.29 points (-0.30%), settling at 21,098.29, with notable pullbacks in cybersecurity and electric vehicle stocks.
- Russell 2000 shed 13.76 points (-0.61%) to close at 2,242.96, underperforming as small caps faced outsized pressure from recession-sensitive sectors and capital flow rotation out of riskier assets.
Despite the relatively modest percentage declines, market tone leaned cautious throughout the session. Mixed corporate earnings, inflation uncertainty, and macroeconomic headwinds kept investors risk-averse.
Notable Decliners Weighed Heavily on Market Tone
- Whirlpool (WHR): Slumped 13.43% after disappointing guidance highlighted ongoing margin pressures and slower housing-related demand.
- PayPal (PYPL): Dropped 8.68% as the fintech giant continued to struggle amid muted growth and increased competition in digital payments.
- Rivian (RIVN): Fell 5.23% as electric vehicle sentiment remained sour, weighed by sluggish demand and operational concerns.
- Palo Alto Networks (PANW): Lost 5.19% despite robust demand in the cybersecurity space, signaling potential valuation fatigue in tech.
- Southwest Airlines (LUV): Declined 4.37%, dragged by industry-wide weakness as travel demand softens and fuel cost concerns rise.
Boeing (BA):
- Dropped 4.30% after earnings beat expectations but investor focus remained on future production risks and labor tensions.
- After-Hours Earnings Reactions 5% Down
Electronic Arts (EA):
- Q1 2026 EPS: $0.79 vs. $0.10 expected — Beat
- Revenue: $1.67B vs. $1.24B expected — Beat
- After-hours reaction: Down 1.62%, possibly due to muted forward guidance or margin concerns.
Visa (V):
- Q3 2025 EPS: $2.98 vs. $2.85 expected — Beat
- Revenue: $10.2B vs. $9.84B expected — Beat
- After-hours reaction: Down 3.07%, suggesting elevated expectations and cautious commentary may have weighed.
Seagate Technology (STX):
- Q4 2025 EPS: $2.59 vs. $2.42 expected — Beat
- Revenue: $2.44B vs. $2.41B expected — Beat
- After-hours reaction: Down 7.67%, pointing to forward-looking concerns despite the headline beat.
Starbucks (SBUX):
- Q3 2025 EPS: $0.50 vs. $0.64 expected — Miss
- Revenue: $9.5B vs. $9.31B expected — Beat
- After-hours reaction: Up 4.48%, with investors likely encouraged by revenue resilience despite earnings miss.
Booking Holdings (BKNG):
- Q2 2025 EPS: $55.40 vs. $49.88 expected — Beat
- Revenue: $6.8B vs. $6.54B expected — Beat
- After-hours reaction: Down 2.52%, possibly reflecting concerns over cost pressures or macro travel outlook.
Conclusion: Tuesday’s session served as a reminder that markets, even amid bullish technical setups and strong corporate results, remain highly sensitive to broader uncertainties. The Dow’s retreat just below record highs signals hesitation, not weakness, with underlying support still in place. As major events unfold over the next few days, the direction of the Dow—and the broader market—may hinge on whether economic signals align with optimistic earnings or reinforce the cautious stance seen today.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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