US stock pattern continues. Dow up. Nasdaq downCrude oil futures settle at $79.26Netanyahu: Confirmed to Trump that additional strikes on rehabilitated Iranian nuclear facilities are unavoidableTrump-Netanyahu meeting reinforces Iran focusUS treasury sells $44B of 7-year notes at a high yield of 4.473%Middle East mediators see U.S.–Iran deal within reachRichmond Fed manufacturing index for July 5 vs 10 estimateConference Board Consumer Confidence for July 90.8 versus 92.3 estimateCaseShiller seasonally adjusted YoY housing prices change 1.6% versus 1.3% estimateTrump on Fox News: Iran understand it will never have a nuclear weaponUS advance goods trade balance for June -$101.5 billion versus -$100 billion estimateUS wholesale inventories for June +0.3% vs +0.4% m/m expectedADP weekly NER pulse 15,000 versus 16,500 last weekThe USD Is modestly higher to kickstart the NA trading for July 28. What are the charts saying?investingLive European FX news wrap: Oman's proposal on Hormuz strait gets regional backingOverall, Tuesday's economic data leaned softer than expected, reinforcing the view that the Federal Reserve is likely to remain on hold when it announces its policy decision tomorrow at 2:00 PM ET.The ADP National Employment Report showed private payrolls increased by just 15,000, below the 16,500 expected, marking the fifth consecutive week of slowing job growth. Wholesale inventories also came in below expectations, while the U.S. trade deficit remained elevated as both imports and exports declined. The Conference Board's Consumer Confidence Index disappointed expectations, with inflation expectations also moving lower, suggesting consumers are becoming less concerned about future price pressures. In addition, the Richmond Fed Manufacturing Index pointed to continued weakness in regional factory activity.Housing data was one of the brighter spots, with the Case-Shiller Home Price Index exceeding expectations. However, after adjusting for inflation, home prices remain lower than a year ago, underscoring the broader cooling trend in the housing market.Taken together, the softer economic backdrop helped push Treasury yields lower while reducing expectations that the Fed will need to tighten policy further. Market pricing now implies roughly a 31% chance of another rate hike, down from nearly 40% just a week ago.U.S. Treasury yields moved lower across the curve:2-year: 4.280%, -4.2 basis points5-year: 4.366%, -3.5 basis points10-year: 4.606%, -3.4 basis points30-year: 5.091%, -3.3 basis pointsThe U.S. dollar finished mixed in relatively quiet trading ahead of tomorrow's Federal Reserve decision. The greenback posted gains against the Japanese yen, British pound, Swiss franc, and Australian dollar, while slipping modestly versus the euro, Canadian dollar, and New Zealand dollar. Overall, the muted price action reflected a market awaiting guidance from Chair Kevin Warsh following the Fed's policy announcement.Adding to the positive tone was growing optimism surrounding the Middle East. Around midday, reports surfaced that regional mediators believe the United States and Iran are moving closer to a potential agreement that could revive a previously abandoned memorandum of understanding and help ease regional tensions. Negotiators from Pakistan, Egypt, and Qatar are reportedly working on a framework governing shipping through the Strait of Hormuz, while the White House is expected to wait until after President Trump's meeting with Israeli Prime Minister Benjamin Netanyahu before deciding whether to move forward.The prospect of reduced geopolitical risk continued to pressure crude oil prices. After trading near $93 per barrel last week, WTI crude fell as low as $77.78 today before recovering modestly. It settled at $79.26, down $3.35 (-4.06%), as traders continued to remove the geopolitical risk premium tied to potential supply disruptions through the Strait of Hormuz.U.S. equities finished mixed as investors balanced the prospect of easing geopolitical tensions and lower oil prices against continued weakness in technology shares. The Dow led the gains, supported by industrial and value-oriented stocks, while the broader market was held back by another round of selling in AI and semiconductor names.Dow Jones Industrial Average: 52,752.28, +537.05 (+1.03%)S&P 500: 7,428.77, +15.60 (+0.21%)Nasdaq Composite: 24,876.91, -55.17 (-0.22%)Russell 2000: 2,953.80, +5.77 (+0.20%)Nasdaq-100: 27,763.13, -276.08 (-0.98%)The market rotation away from mega-cap technology continued, with investors favoring cyclical and value sectors while AI-related stocks remained under pressure.Looking ahead, the next two days could prove pivotal for financial markets.Wednesday's earnings calendar is headlined by Microsoft and Meta Platforms, both reporting after the closing bell. Investors will be watching closely for updates on AI monetization, cloud demand, advertising trends, and capital spending after recent weakness in AI-related shares. Earlier in the day, Procter & Gamble will offer another read on consumer spending and pricing trends, while Qualcomm will provide insight into demand across the smartphone and semiconductor markets.Then on Thursday, Apple and Amazon report, making this one of the busiest and most influential stretches of earnings season.Before those earnings hit, however, the market's attention will be squarely on the Federal Reserve. The Fed is widely expected to leave interest rates unchanged, making Chair Kevin Warsh's post-meeting press conference the primary focus. Investors will be listening for any indication that cooling inflation and a moderating labor market are bringing the Fed closer to a rate cut later this year, or whether policymakers still believe inflation risks justify keeping rates higher for longer. Any changes to the policy statement, economic projections, or the voting split could have an immediate impact on stocks, Treasury yields, and the U.S. dollar. This article was written by Greg Michalowski at investinglive.com.