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Visa, Mastercard Dip as Markets Await Fed Decision Amid Strong U.S. GDP Rebound | MarketReader Minute
U.S. GDP Surges 3% in Q2 2025, While Europe Faces Mixed Economic Signals Ahead of Key Central Bank Decisions.
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U.S. GDP Surges 3% in Q2 2025, While Europe Faces Mixed Economic Signals Ahead of Key Central Bank Decisions.
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(XLE) is up 0.9% since Monday, supported by a landmark U.S.-EU trade agreement securing \$750B in American energy purchases over three years. Crude oil prices have risen nearly 0.7% to \$67, with Brent up 3.28%. Top contributors include Exxon Mobil, ConocoPhillips, and Williams Companies.
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(VGT) dipped 0.3% even as a stronger U.S. dollar and a new U.S.-EU trade deal stirred optimism for domestic tech. AMD rallied on a BofA target hike, Cadence beat Q2 expectations, and Corning impressed with optical segment strength. Investors remain cautious ahead of the Fed’s rate decision tomorrow.
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(IBB) edged down 0.2% Tuesday as mixed earnings and interest rate uncertainty weighed on sentiment. While the FDA's approval of SEPHIENCE™ for phenylketonuria marked a sector win, underperformance from MRNA, EXEL, IQV, CRSP, and BNTX dragged on the ETF.
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(XLF) declined 0.5% on Tuesday, tracking broader market weakness following the U.S.-EU trade agreement. PayPal fell despite strong Q2 earnings, with concerns over transaction volumes. Visa and Mastercard declined ahead of earnings amid cautious sentiment.
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(XLY) dropped 0.7% on Tuesday, in step with a broader market pullback following a finalized U.S.-EU trade deal imposing 15% tariffs on various imports. Tesla and Amazon weighed on the ETF, while Royal Caribbean slipped despite strong Q2 results, due to soft Q3 guidance.
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US Dollar Strengthens on Favorable US-EU Trade Agreement Amid Positive Economic Data and Anticipated Fed Interest Rate Decisions.
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(VGT) rose 0.56% today amid optimism following a U.S.–EU trade agreement that introduces 15% tariffs on EU goods while channeling investments into U.S. energy infrastructure. Leading contributors included NVDA, AMD, AVGO, SMCI, and TXN.
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A positive start to the week was overshadowed by concerns following a major FDA rejection, as noted by a leading oncologist. Despite optimism around a gene therapy trial in Europe and lower-than-expected pharma tariffs, key holdings like GILD, AMGN, VRTX, BIIB, and BNTX declined.
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(XLY) is up 0.54% amid a new U.S.–EU trade deal and optimism over U.S.–China tariff truce talks. Nike leads gains after a JPMorgan upgrade citing stronger sales and margins, with shares jumping to \$78.60. Tesla, Amazon, Home Depot, and Lowe’s also contributed to the fund’s rise.
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U.S. and EU strike trade deal reducing tariffs to 15%, boosting market optimism as investors eye Fed's interest rate decision amid rising crude oil prices.
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Federal Reserve's July 30 meeting looms as resilient labor market data and trade negotiations shape interest rate expectations amidst political pressures.