Retrograde Risks: Markets and Miscommunication

Weekly Market Recap & Astro-Market Outlook Week Ended July 25, 2025

The final full week of July wrapped with all three major U.S. equity indexes posting solid weekly gains, powered by tech earnings momentum, declining volatility, and anticipation around key macroeconomic data. The S&P 500 added 1.5%, the Dow Jones Industrial Average rose 1.3%, and the NASDAQ gained 1.0%. All three have been steadily advancing since June 20, with the S&P 500 and NASDAQ notching new record highs. This marks the fourth week out of the last five in which markets posted gains.

Behind these headline numbers lies a more complex story involving a narrow leadership group, rising international optimism, and an astrological climate that favors risk-taking and dramatic policy signaling.

Market Drivers: Narrow Leadership, Broader Calm

The so-called “Magnificent 7” mega-cap tech firms are once again pulling disproportionate weight. As earnings season entered its peak, these firms are expected to post 14.1% second-quarter earnings growth—far outpacing the 3.4% expected from the remaining 493 companies in the S&P 500. Their outperformance is driving broader market gains, but it’s also reinforcing concerns over market concentration.

Meanwhile, the Cboe Volatility Index (VIX) dropped 9% on the week to 14.9, its lowest level since February. A more complacent market rarely emerges without consequences—but under current planetary configurations, this low-vol regime may persist in the short term.

Astrological Backdrop: Fire Rising, Pressure Mounting

The Sun has just moved to 12° Leo, signaling a shift in tone from cautious Cancer to bold Leo leadership. Mercury is retrograde at 6° Leo, cautioning against miscommunication—particularly relevant ahead of the Federal Reserve meeting and GDP release this week.

Mars at 28° Virgo is nearing its ingress into Libra. This late Virgo placement is highly efficient, energizing detail-oriented sectors like manufacturing and logistics—but also sharpening investor scrutiny. A trine from Mars to Pluto in Aquarius late last week likely amplified market volume and institutional moves behind the scenes.

The Moon in Sagittarius over the weekend created a risk-on mood, encouraging bullish sentiment into the Monday open. However, with Venus in Cancer forming a loose opposition to Pluto, emotional undercurrents—especially around housing and consumer confidence—remain a point of concern.

Jupiter, sitting at 12° Cancer, is in a water sign that traditionally favors defensive sectors. But Jupiter’s exact trine to Saturn in Aries earlier this month continues to offer a rare mix of optimism and structural integrity—hence the bullish conviction seen in financials and real estate (up 1.7% and 1.8%, respectively).

Sector Rotation and Style Performance

Leadership during the week was broadly distributed across cyclical sectors. Healthcare led with a 3.5% gain, followed by industrials and materials, each up 2.3%. Real estate, financials, and communication services also outperformed. Utilities and tech lagged, though still posted modest gains.

Style performance remained consistent with recent months: growth continues to lead across all cap sizes year-to-date, with large-cap growth up 12.7% in 2025. Small caps, however, are struggling to gain traction. Small-cap core and value indexes are barely in positive territory for the year, reflecting lingering concerns about credit access and economic sensitivity.

International Outlook: Europe and Asia Continue to Lead

The MSCI EAFE index rose 1.9% last week and is now up 21.6% year-to-date. European equity markets in particular continue to benefit from a combination of favorable currency flows and positive earnings surprises. Spain and Italy posted standout weekly gains of 2.7% and 2.8%, respectively.

Japan surged 5.1% on the week, boosted by a strong earnings season and renewed confidence in domestic consumption. China gained 2.8% despite ongoing geopolitical tensions, while India slipped 1.3%, reflecting stretched valuations and weaker-than-expected data.

Astrologically, Jupiter in Cancer (domicile of the Moon) supports a globally cautious but optimistic approach—especially in nations where public investment and consumer confidence are growing.