QCP: US Equities End Mixed as Fed Decision Looms This Week
According to QCP, the US equities closed mixed on Friday, July 24, 2026 as the investors are assessing another week of corporate earnings and looking ahead to the Federal Reserve’s policy decision on Wednesday (July 29, 2026). Moreover, the S&P 500 gained 0.05% to reach 7,412; Nasdaq Composite lost 0.64% to end at 24,976.
After a tougher session on Thursday, July 23, 2026, markets settled into a quieter finish. Traders said tech profits taking and uneven corporate reports were the main drags on the growth-heavy Nasdaq, while cyclical stocks helped leave the Dow.
Yields, Dollar and Oil in Play
Bond markets remain to be the centre-stage. The 10-year US Treasury yield pulled back to about 4.67% on Friday, retreating from multi-month highs hit earlier in the week. The drop in softer oil prices eased some of the pressures to push up yields as well, easing one of the major sources of stress in the market. The US Dollar Index (DXY) has remained stable at 101.4, without any clear direction amid traders’ wait and see attitude prior to the Fed.
All Eyes on The Fed
The focus now shifts to the FOMC meeting that is scheduled for Wednesday, July 29, 2026. The markets believe that the Fed will maintain the range of the target interest rate unchanged; however, the statements released and the press briefing by Chair Kevin Warsh will give indications of the future policy stance. Investors will pay particular attention to the change in the stance on inflation momentum and economic growth, which will immediately affect the stock and bond market performance.
Crypto Outperforms Equities in July
Digital assets continued to show relative strength versus equities through July. Bitcoin and Ether have rallied month-to-date, with BTC up roughly 11.6% and ETH gaining about 24.6%. This outperformance comes despite a tougher macro backdrop, including higher Treasury yields at times and bouts of risk-off sentiment in equities.
Institutional flows cooled late last week. US-listed spot Bitcoin and Ether ETFs recorded combined net outflows of around $311 million on July 24, snapping a seven-day streak of inflows. While flows can swing from day to day, ETF activity remains a key read on institutional interest and market sentiment in the crypto space.
Regulation Remains a Focus
Regulatory changes are also being watched by investors. The market players are keeping an eye on the developments related to the CLARITY Act which could potentially change the regulation of digital currencies at the federal level. Any activity, or inactivity in the matter of legislation will affect exchanges, custodians and institutional investment strategies.
Options and Derivatives Show Caution
Derivatives markets suggest traders are hedging their bets. After some earlier improvement, demand for downside protection has picked up again, reflecting renewed risk-off mood in parts of the market. Short-dated risk reversals that had tightened in early July have partially reversed, indicating traders want more insurance against near-term downside.
Ethereum’s short-dated implied volatility runs higher than Bitcoin’s, signalling that options traders expect bigger swings in ETH over the near term. Despite this, perpetual futures funding rates remain positive, implying that longer-term positioning in crypto is still titled toward bullishness even as spot prices wobble.
According to QCP, the things to look out for include:
- 29 July: FOMC policy decision and Chair Warsh’s press conference, the primary macro event for markets.
- US Treasury yields: Continued moves across the curve could reprice risk assets.
- ETF Flows: Observers will check whether last week’s outflows were a blip or the start of a trend.
- CLARITY Act progress: Any updates on the bill’s timetable could shift crypto sentiment.
Final Thoughts
For now, markets are in a cautious mood. The stocks were little changed after earnings, while crypto managed to outperform despite remaining sensitive to ETF flows and policy news. Traders say the Fed’s messaging on Wednesday and any further moves in yields will likely dedicate the next meaningful leg for both stocks and digital assets.
