Russia Cuts Key Rate to 18%; S&P 500 Earnings Beat Estimates
Key Takeaways
- Russia's Central Bank cut its key rate to 18% due to easing inflation.
- S&P 500 earnings robust; 83% beat estimates, index up 28% since April.
- Mexico's annual inflation drops to 3.55%, core inflation rises to 4.25% in July.
- EU and US near trade deal with 15% tariff; IMF favors regionalization.
- Bank of America warns of rising stock market bubble risks due to loosening policy.
Top Stories
Russia's Central Bank cuts key rate to 18% amid easing inflation.
On July 25, 2025, the Central Bank of Russia reduced its key rate to 18%, a 2 percentage points decrease, due to reduced inflationary pressure. The bank expects balanced economic growth, with potential for further rate adjustments depending on economic conditions.
S&P 500 earnings robust, 83% beat estimates, up 28% since April.
In July 2025, a Bloomberg report indicated that approximately 83% of S&P 500 companies surpassed analysts' profit estimates, the highest share since Q2 2021, with the index up 28% since April 8.
Mexico's annual inflation drops to 3.55%, core inflation at 4.25%.
In July 2025, Mexico's annual inflation dropped to 3.55%, while core inflation rose to 4.25%, potentially allowing the Bank of Mexico to lower interest rates.
EU and US near trade deal with 15% tariff; IMF favors regionalization.
The EU and US are nearing a trade deal with a 15% tariff, while the IMF suggests regionalization of economies as a strategy to navigate the trade war.
Bank of America warns of rising stock market bubble risks.
Bank of America strategists warn of rising bubble risks in stock markets due to loosening monetary policy, with the global policy rate decreasing to 4.4%.
Finance Trends
Trump visits Fed, pressures Powell on rates; US stock futures steady.
On July 24-25, 2025, President Trump visited the Federal Reserve, pressuring Jerome Powell to cut interest rates, while US stock futures edged up as investors assessed the situation.
Wall Street advises buying hedges against potential US stock losses.
Goldman Sachs and Citadel Securities are advising clients to purchase hedges against potential losses in US stocks, with the cost of protection against a 10% decline in the S&P 500 at its lowest level since January.
Gold prices decline as trade tensions ease; silver rises.
On July 25, 2025, gold prices declined due to easing trade tensions, while silver rose due to strong demand amid easing trade war concerns.
ECB cautious on future rates, open to further cuts if needed.
ECB President Christine Lagarde and ECB member Francois Villeroy de Galhau have expressed caution regarding future monetary policy decisions, emphasizing the need to remain open to potentially lowering interest rates again.
Global Economy
IMF approves Argentina's agreement, allowing $2 billion disbursement.
The IMF approved the technical review of Argentina's $20 billion agreement, signed in April, allowing a $2 billion disbursement to improve reserves and reduce inflation.
England's resident doctors strike, potentially reducing UK's July GDP.
Resident doctors in England are striking on July 25, 2025, potentially reducing the UK's July economic growth by 6 to 11 basis points.
Eurozone business activity hits 11-month high in July.
In July 2025, Eurozone business activity accelerated, reaching an 11-month high, with the composite PMI rising to 51, indicating slight economic growth.
ECB lowers Euro zone inflation forecast to 2% for 2025.
The European Central Bank's Survey of Professional Forecasters lowered the Euro zone inflation forecast to 2% for 2025, down from 2.2%.
IMF: Tariff anticipation boosted US imports in Q1, slowing growth.
On July 24, 2025, the IMF stated that the anticipation of tariffs led to a surge in US imports in Q1, slowing economic growth.
Treasury Secretary Bessent influences US competitiveness via tariffs.
U.S. Treasury Secretary Scott Bessent is influencing U.S. competitiveness through tariff increases, trade negotiations, and budget cuts.
Japanese yen strengthens after US trade deal, hits two-week high.
On July 24, 2025, the Japanese yen strengthened against the US dollar, reaching a two-week high due to a recent trade deal between Japan and the US.
China injects $84 billion to calm bond market jitters.
On July 25, 2025, China's central bank injected 601.8 billion yuan ($84 billion) into the financial system to calm bond market jitters and prevent a bond selloff.
China's budget deficit hits record $733 billion amid trade tensions.
China's budget deficit reached a record 5.25 trillion yuan ($733 billion) in the first half of 2025, a 45% increase, due to efforts to boost domestic demand amid reduced exports.
Starmer to meet Trump, seeking tariff cuts on British steel.
British Prime Minister Keir Starmer is scheduled to meet U.S. President Donald Trump on July 28 in Scotland to discuss further tariff reductions, particularly on British steel.
Market Overview
Dow futures fall; Tesla shares drop after Q2 results.
On July 24, 2025, Dow futures fell due to trade talks and earnings reports, while Tesla shares fell more than 8% following a drop in second-quarter results.
US stocks mixed; Nasdaq hits record high, Dow declines.
On July 24, 2025, the US stock market showed mixed results, with the Dow Jones Industrial Average declining and the Nasdaq reaching a new record high, supported by Nvidia.
Cramer notes mixed market, Trump's Japan deal, data center strength.
On July 23, 2025, Jim Cramer on CNBC described a mixed market environment, highlighting Trump's trade deal with Japan and strength in data centers.
S&P 500 and Nasdaq hit new highs amid trade negotiation hopes.
On July 25, 2025, the S&P 500 and Nasdaq Composite reached new highs as investors awaited clarity on trade negotiations and digested upbeat second-quarter earnings.
S&P 500 and Nasdaq hit record closes on July 23.
On July 23, 2025, the S&P 500 and Nasdaq hit record closes, with the S&P 500 rising by 0.78 percent and the Nasdaq Composite also rising 0.6%.