Stock traders resisted placing large bets on the last day of July, as fears of an overheated market resurfaced amid a rally that propelled the S&P 500 to its longest streak of monthly gains since August 2021.
Despite the Federal Reserve's rate hikes, Wall Street has moved past concerns about an earnings recession as data has bolstered hopes for a soft landing. While many investors believe the great tech rally that has driven this year's advance in equities will continue, there is a growing view that the sector is due for a rest, which could weigh on the broader market.
The S&P 500 rose to around 4,590, close to a 16-month high. The megacap space was also quiet, with Apple and Amazon both expected to report earnings in the coming days. Since August 2020, the Nasdaq 100 has had the longest streak of monthly gains. Treasury 10-year yields were close to 3.95%, while the dollar remained relatively unchanged.
Traders overlooked a Fed survey of lending officers. As Chair Jerome Powell hinted, the central bank said financial institutions reported tighter standards and continued weak loan demand in the second quarter, extending a trend that began before recent banking sector stresses emerged.
