The Ibex 35 index experienced notable volatility between late July and early August 2025 amid evolving trade and macroeconomic conditions. Following the announcement of a new trade agreement between the United States and the European Union, which imposed 15% tariffs, the Ibex 35 surged to levels not seen since 2008, reaching above 14,500 points and marking a 2.9% gain for July. This rally was supported by strong corporate earnings, particularly from banks such as Unicaja, which rose 8%, and BBVA, whose positive results and forecasts boosted the index. The Spanish GDP and internal consumption data also contributed to market optimism. However, the momentum slowed in early August as the market reacted to renewed tariff threats from former President Donald Trump and weaker-than-expected U.S. employment figures. The Ibex 35 declined by approximately 0.78% in the first week of August, falling below 14,200 points. European indices including the DAX, CAC, FTSE MIB, and FTSE 100 also faced downward pressure, with futures for Wall Street dropping around 1%. Market participants remained attentive to upcoming macroeconomic releases such as the Eurozone Consumer Price Index and U.S. employment reports, as well as ongoing corporate earnings announcements from major Spanish companies like Santander, CaixaBank, Telefónica, and Grifols. The Federal Reserve's interest rate decisions also influenced market sentiment during this period.