Markets remained stable in July 2025 despite trade uncertainty, as the US secured favorable tariff deals with Japan, the EU, and the UK, boosting its political and economic position. Strong US economic data, upbeat corporate earnings especially in AI and expectations of future rate cuts supported equities, with tech stocks leading gains. The dollar rebounded sharply, while the UK faced rising inflation and unemployment. Although some trade issues remain unresolved, reduced policy uncertainty and resilient growth have lifted investor sentiment, though stretched valuations suggest short-term caution is warranted.