#markets #earnings #recession #rates #fed #volatility

This Monday, July 25, 2022, the markets had a volatile behavior, with fluctuations throughout the day.

The S&P managed to close the day with a slight gain of +0.13%, the Dow Jones achieved a gain of +0.28%, while the NASDAQ ended in negative territory with a loss of -0.55%.

This volatility, which reflects a cautious mood on the part of investors, is due to the fact that they are waiting for the earnings reports that will be presented this week. Two of the most anticipated will be Microsoft (MSFT) and Google (GOOGL), tomorrow.

Likewise, another strong influence on investor sentiment is the Fed's monetary policy meeting that begins tomorrow, Tuesday, and concludes this Wednesday. While most investors expect less hawkish behavior from the Federal Reserve, with a 0.75% rate hike expected, due to some signs that inflation is moderating, and the Treasury Secretary's statement, Janet Yellen, that she doesn't see any sign that the US economy is in a broad recession. All investors are very attentive and waiting for the expected hike rate to be confirmed this Wednesday.

Index futures point to a negative open this Tuesday.

The environment suggests that it will be a volatile Tuesday.