Top US Stocks and Sectors to Watch: Final Week of July 2025 Market Outlook

US Markets Near Highs — But What Comes Next?

The final week of July kicks off with US stocks near their all-time highs. The S&P 500 closed at 6,388.64 on Friday, July 25, up 17% year-on-year. The Nasdaq followed suit, notching another record close. Strong earnings, easing trade tensions, and resilient consumer data have kept momentum intact.

But there’s a catch. RSI levels for both indices are above 75, historically a sign that markets may be overheated. And with a packed calendar ahead, from Big Tech earnings to the Fed’s latest decision, there’s little room for missteps.

What’s Driving Sentiment?

A few key factors are keeping investor confidence high:

• Corporate Earnings: So far, results from large caps have come in stronger than expected. More than 40% of the S&P 500 is set to report results this week, including tech giants that often set the tone for broader market trends.

• Trade Diplomacy: The US–Japan trade deal, which reduces tariffs and introduces a $550 billion Japanese investment pledge, has given industrials and multinationals a boost.

• Macroeconomic Strength: Inflation is cooling, job data remains solid, and the Fed is expected to hold rates steady for the time being.

Still, valuations are elevated. Companies that miss earnings expectations are being punished quickly. This week’s reports may be less about what companies did last quarter and more about what they expect next.

5 Stocks Worth Watching This Week

1. Apple $AAPL ( ▲ 5.09% )

Apple reports on Thursday. Investors are watching for updates on iPhone sales—particularly in China—and any hints on how AI is being baked into its product ecosystem.

• Focus: Services revenue, China demand, AI commentary.

2. Amazon $AMZN ( ▲ 4.01% )  

Amazon’s cloud business, AWS, has become a key part of the company’s value story. As AI workloads continue to grow, the spotlight is on whether AWS can keep pace with Microsoft and Google.

• Focus: AWS growth, retail operating margins, capital spending on AI.

3. Microsoft $MSFT ( ▼ 0.53% )  

Microsoft also reports on Wednesday. Azure’s performance and how well its partnership with OpenAI is translating into actual product adoption will be in focus.

• Focus: Cloud growth, AI monetisation, guidance on OpenAI integration.

4. PayPal $PYPL ( ▲ 2.34% )  

Under new leadership, PayPal is trying to regain relevance. New products, such as its cash-back debit card and advertising platform, have sparked some optimism, but results need to confirm that the turnaround is real.

• Focus: User growth, transaction volume, operating margins.

5. Coinbase $COIN ( ▲ 1.88% )  

Bitcoin is now trading above $100,000. Coinbase’s earnings will reveal whether that’s translating into real volume, revenue, and retention. With crypto regulation on the table, commentary could matter as much as the numbers.

• Focus: Trading volume, revenue mix, regulatory impact.

Key Market Dates

Here’s what’s on the calendar:

• Mon, July 28 – Quiet open to the week, but watch for pre-earnings moves and headlines out of US-China trade talks in Stockholm.

• Tues, July 29 – The Fed’s two-day meeting begins. GM and Coca-Cola report.

• Wed, July 30 – FOMC rate decision. No change expected. Microsoft and Amazon report. Housing data is also due.

• Thurs, July 31 – Jobless claims and PMI data also hit.

• Fri, Aug 1 – Nonfarm payrolls for July. This is the key macro release of the week, also the deadline for the US-Japan and potential US–China trade deal finalisations.

Sectors in Focus

Tech:
The market is still riding the wave of AI. With Microsoft, Apple, and Amazon all reporting, this week could reset sentiment for better or worse.

Financials & Fintech:
Fintech names like PayPal are in the spotlight. Rate decisions and retail flows could have a broad impact on the group.

Industrials:
Stocks like Caterpillar could benefit from renewed trade optimism, especially as Japan commits long-term capital into US infrastructure.

Consumer Discretionary:
Amazon and Starbucks will provide insight into how consumers are spending and whether higher-income groups continue to drive demand.

Crypto:
With Bitcoin above six figures, platforms like Coinbase and Robinhood are in focus. Legislation like the Clarity Act could drive sudden volatility.

Final Take

The setup for this week is straightforward: markets are extended, but earnings and macro data will determine what happens next. With major tech names reporting, a Fed meeting, and jobs data all packed into five days, investors won’t lack for signals.

How the market digests it all may tell us whether this rally has more legs—or if we’re due for a breather.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or speak to a qualified professional before investing.