Stock Market Today: S&P 500 Achieves Fifth Consecutive Record Close Amid Cautious Outlook from Vanguard and Goldman Sachs
By Noah Weidner, July 25, 2025
The U.S. stock market closed the week on a strong note, with the S&P 500 index recording its fifth consecutive all-time high. This milestone is a significant event in market history, highlighting sustained investor optimism even as some leading financial institutions caution about future growth prospects.
S&P 500’s Historic Run
The S&P 500 and Nasdaq traded in close tandem throughout the week, each posting daily gains that culminated in new record highs. According to Howard Silverblatt of S&P Global, the S&P 500 has hit five consecutive record closes only 57 times in its history, with the previous streak occurring just last July.
Today, the S&P 500 rose by 0.40%, while the Dow Jones Industrial Average outpaced it slightly by climbing 0.47%. The Russell 2000, which tracks smaller companies, also gained 0.39%. Meanwhile, the Cboe Volatility Index (VIX), a gauge of market uncertainty, declined by 2.7%, signaling reduced investor fear.
The markets are poised for another potentially strong week ahead, as earnings reports from major mega-cap companies are expected to be released.
Top Movers of the Day
Among noteworthy individual stock movers, shares of Sarepta Therapeutics (SRPT) fell sharply after European regulators rejected its Elevidys gene therapy for Duchenne muscular dystrophy (DMD). The European Medicines Agency cited insufficient clinical evidence to prove the therapy’s effectiveness. This setback follows a troubling series of safety concerns including recent liver-related patient deaths, which led the U.S. Food and Drug Administration to advise Sarepta to halt sales earlier this month. Sarepta’s shares declined by 7%, trading below $12 after being as high as $150 a year ago.
Sarepta’s temporary withdrawal impacts the DMD community profoundly, as Elevidys remains the only approved treatment for this rare, degenerative disease.
Vanguard and Goldman Sachs Warn on U.S. Growth Prospects
Despite the bullish momentum in the stock market, Vanguard has downgraded its outlook for U.S. equities and bonds. Using its proprietary Capital Markets Model, the investment firm highlighted that market valuations are currently stretched to historic highs. The model compares the Cyclically Adjusted Price/Earnings (CAPE) Ratio percentile to Vanguard’s internally derived fair-value estimate, revealing that U.S. equities are trading at the 99th percentile relative to fair value.
This elevated valuation suggests that returns for U.S. stocks may weaken moving forward. In addition, other asset classes — including U.S. fixed income, emerging-market sovereign debt, and unhedged international equities — also show stretched valuation levels.
However, Vanguard’s model identifies some pockets of opportunity within the market. U.S. value stocks and small-cap shares are currently considered fairly valued or even undervalued, presenting potential investment avenues for cautious investors.
Goldman Sachs has echoed a similar sentiment, highlighting risks to future growth amid these high valuations and encouraging investors to remain vigilant.
Health Insurance Stocks Face Challenges
The health insurance sector continues to experience turbulence, as companies struggle with rising medical costs and increased loss ratios on government program plans like Medicare Advantage. Centene Corporation (CNC), after reporting its first quarterly loss in 13 years, saw its shares rise 5% today despite a steep 47% drop month to date. Molina Healthcare (MOH) also continues to suffer, down about 44% over the same period, reflecting broad sector headwinds.
Market Summary
- S&P 500: +0.40%
- Dow Jones Industrial Average: +0.47%
- Russell 2000: +0.39%
- Gold: -1.12%
- Bitcoin: -1.91%
- Cboe Volatility Index (VIX): -2.7%
As the market closes another historic week, investors are preparing for an earnings season that could further shape the trajectory of U.S. equities. While record highs underscore bullish sentiment, warnings from Vanguard and Goldman Sachs serve as a reminder that caution may be warranted in the months ahead.
Stay tuned to Smart Money Mindset for continued coverage of market developments and expert analysis.