S&P 500 up 0.70% — Market Pulse · Jul 31, 2026
Stocks closed out July 31 on a firmer note, led by large cap growth. The Nasdaq Composite rose 251.67 points, or 1%, to 25,373.85, while the S&P 500 added 52.09 points, or 0.7%, to 7,489.72. The Dow Jones Industrial Average gained 276.97 points, or 0.53%, to 52,485.03. The Russell 2000 went the other way, slipping 14.76 points, or 0.5%, to 2,931.34.
Key Takeaways
- S&P 500 closed up 0.70% at 7,489.72.
- Market breadth finished with 221 advancers, 281 decliners, and a 0.786 advance/decline ratio.
- Consumer Discretionary led sectors at +3.29%, while Materials lagged at -2.34%.
- VIX ended at 15.99 in the latest five-session lookback.
- SPY’s first resistance is 744.51 and first support is 736.69.
Market Breadth: Indexes finished higher, but breadth stayed selective as the Nasdaq led and small caps lagged
| Metric | Jul 27 | Jul 28 | Jul 29 | Jul 30 | Jul 31 |
|---|---|---|---|---|---|
| Advance/Decline Ratio | 1.874 | 2.462 | 0.567 | 0.648 | 0.786 |
| Advances | 328 | 357 | 182 | 197 | 221 |
| Declines | 175 | 145 | 321 | 304 | 281 |
| Advancing Volume | 59.5% | 64.9% | 33.0% | 48.3% | 53.3% |
| Stocks Near 52-Week Highs | 29 | 40 | 8 | 7 | 3 |
| Stocks Near 52-Week Lows | 1 | 0 | 4 | 0 | 1 |
| % Above 20-Day MA | 64.0% | 69.4% | 63.2% | 56.3% | 53.3% |
| % Above 50-Day MA | 69.2% | 72.0% | 66.2% | 64.4% | 62.2% |
| % Above 200-Day MA | 70.0% | 72.0% | 70.0% | 69.2% | 68.0% |
Under the surface, participation was mixed. Advancers trailed decliners, 221 to 281, for an advance-decline ratio of 0.786, though advancing volume still accounted for 53.56%. Breadth has cooled over the week: the share of stocks above their 20 day moving average fell to 53.28% from 69.38% on July 28, while the 50 day reading eased to 61.23% and the 200 day reading stood at 64.81%.
Explore the full dashboard: Market breadth.
Market Performance: Major Indexes
| Index | Close | Change | % Change |
|---|---|---|---|
| S&P 500 | 7,489.72 | 52.09 | +0.70% |
| Dow Jones Industrial Average | 52,485.03 | 276.97 | +0.53% |
| Nasdaq Composite | 25,373.85 | 251.67 | +1.00% |
| Russell 2000 | 2,931.34 | -14.76 | -0.50% |
Five-session context:
| Index | Jul 27 | Jul 28 | Jul 29 | Jul 30 | Jul 31 |
|---|---|---|---|---|---|
| S&P 500 | +0.02% | +0.21% | -1.52% | +1.66% | +0.70% |
| Dow Jones Industrial Average | +0.51% | +1.03% | -2.19% | +1.19% | +0.53% |
| Nasdaq Composite | -0.18% | -0.22% | -1.74% | +2.78% | +1.00% |
| Russell 2000 | +0.62% | +0.20% | -1.61% | +1.37% | -0.50% |
Over the past five sessions, the S&P 500 rebounded from its July 29 drop and finished at 7,489.72, above its July 28 close of 7,428.78. The Nasdaq showed the strongest recovery path, swinging from a 1.74% decline on July 29 to gains of 2.78% on July 30 and 1% on July 31. The Russell 2000 also bounced on July 30, but its 0.5% decline on Friday left small caps lagging the larger indexes into the weekend.
Explore the full dashboard: Market snapshot.
Sector View: Leaders and Laggards
- Leaders: Consumer Discretionary (XLY +3.29%), Communication Services (XLC +1.56%), Energy (XLE +1.00%), Industrials (XLI +0.81%), Financials (XLF -0.11%)
- Laggards: Materials (XLB -2.34%), Utilities (XLU -0.69%), Health Care (XLV -0.59%), Real Estate (XLRE -0.51%), Consumer Staples (XLP -0.49%)
Leadership was concentrated. Consumer Discretionary led with XLY up 3.29%, followed by Communication Services at 1.56%, Energy at 1%, and Industrials at 0.81%. Materials was the clear laggard, with XLB down 2.34%, while Utilities fell 0.69%, Health Care lost 0.59%, Real Estate slipped 0.51%, and Consumer Staples gave up 0.49%.
Explore the full dashboard: Sector performance.
Volatility: VIX and ETF Implied Volatility
| Metric | Jul 27 | Jul 28 | Jul 29 | Jul 30 | Jul 31 |
|---|---|---|---|---|---|
| VIX Level | 18.67 | 18.21 | 20.66 | 17.09 | 15.99 |
- SPY IV: 10.68% (Low)
- QQQ IV: 21.50% (Normal)
- IWM IV: 15.84% (Normal)
- DIA IV: 11.43% (Low)
Volatility kept easing after the midweek jump. The VIX closed at 15.99, down from 20.66 on July 29, 17.09 on July 30, and 18.67 at the start of the five-session stretch. Implied volatility also looked contained in some major ETFs, with SPY at 10.68% and DIA at 11.43%, both labeled Low, while QQQ was 21.50% and IWM was 15.84%, both labeled Normal.
Explore the full dashboard: Volatility.
Headlines Moving Markets
This week’s macro tone included a 1.5% annualized advance estimate for second quarter real GDP, down from 2.1% in the first quarter. June personal income rose $54.9 billion, or 0.2%, disposable personal income increased $48.3 billion, or 0.2%, and personal consumption expenditures rose $65.2 billion, or 0.3%. The Federal Reserve also issued its FOMC statement on July 29, and official release coverage for the day included PCE.
- GDP (Advance Estimate), 2nd Quarter 2026
- Federal Reserve Board requests comment on a proposal to modernize its rule governing the extension of credit to bank “insiders”—bank executives, board members and major shareholders who could potentially influence a bank’s lending decisions
- Federal Reserve Board requests comment on a proposal to modernize rules for mutual banking organizations
- Personal Income and Outlays, June 2026
- Federal Reserve Board issues enforcement action with Iuka Bancshares, Inc. and The Iuka State Bank
- Federal Reserve Board issues enforcement actions with former employee of Regions Bank and former employee of First Interstate Bank
- Federal Reserve issues FOMC statement
- Minutes of the Board’s discount rate meetings on June 8 and June 17, 2026
- Gold holds modest gain after Federal Reserve keeps rates steady
- Treasury sell-off continues after divided Fed holds interest rates steady
- Microsoft shares are surging. Here’s how to still make money, says Mike Khouw
- Iran’s Araqchi presses European counterparts over use of bases in US operations - Reuters
Technical Snapshot (SPY)
| Level | Jul 27 | Jul 28 | Jul 29 | Jul 30 | Jul 31 |
|---|---|---|---|---|---|
| 20-day SMA | 746.15 | 746.62 | 746.62 | 745.76 | 745.56 |
| 50-day SMA | 744.08 | 744.05 | 743.94 | 743.79 | 743.89 |
| 200-day SMA | 695.39 | 695.76 | 696.13 | 696.45 | 696.92 |
Near-term pivot structure, based on 2026-07-30:
- Resistance: 744.51 (R1), then 747.39 (R2)
- Pivot: 739.57
- Support: 736.69 (S1), then 731.74 (S2)
SPY technical levels offer a useful map for the next session. The traditional pivot was 739.57, with resistance at 744.51 and 747.39, and support at 736.69 and 731.74. The July 31 SPY moving averages were 745.56 for the 20 day, 743.89 for the 50 day, and 696.92 for the 200 day. Those shorter averages remain above the pivot, but the week-over-week drop in participation suggests price strength has outrun breadth a bit.
Explore the full dashboard: Support & Resistance levels.
What to Watch Next
- Breadth follow-through after advancers trailed decliners, 221 to 281, despite 53.56% advancing volume.
- SPY around the 20 day and 50 day moving averages at 745.56 and 743.89.
- Whether the Russell 2000 can catch up after closing at 2,931.34, down 0.5% while the Nasdaq gained 1%.
- Sector rotation, especially if XLY keeps leading and XLB remains under pressure.
- Volatility behavior after the VIX slid to 15.99 from 20.66 two sessions earlier.
Bottom Line
Friday’s close looked constructive at the index level, especially for the Nasdaq and S&P 500, but weaker breadth and small cap lag suggest the move was not broad based. With volatility cooling and SPY still above key short and intermediate moving averages, the near-term backdrop remains firm, though participation will matter if the rally is going to widen.
Market Pulse provides daily analysis of S&P 500 market breadth, sector rotation, and volatility signals to help investors understand what’s happening beneath the surface. Data sourced from our real-time market breadth collectors. For personalized planning, explore our retirement calculators, investment tools, and FIRE planning resources.
Disclaimer: Nothing here is investment advice or a recommendation to buy or sell any security. This content is for educational purposes only. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you. You should not rely on this information without independent verification or professional advice. No client relationship or fiduciary duty is created by viewing or using this content. Investments involve risk, including the possible loss of principal.
Wes Dean
Co-Founder & Chief Technology Officer
Dean Financials
Wes brings over 25 years of IT industry experience combined with a lifelong passion for financial markets. An active stock market investor since high school, he developed the proprietary market breadth and volatility analysis systems that power Dean Financials' data dashboards. Wes's unique combination of software engineering expertise and deep market knowledge enables him to create sophisticated yet accessible tools for analyzing market conditions and making data-driven investment decisions.
Areas of Expertise:
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