On July 29, the Federal Reserve Bank of Dallas released its report on the Dallas Federal Manufacturing Index.

The report showed that the Dallas Federal Manufacturing Index declined to -17.5 from -15.1 in June compared to analysts' forecast of -12. The Production Index declined to -1.3 in July from 0.7 in June, while the New Orders Index also declined to -12.8 from -1.3.

U.S. Treasury yields continued to bounce off their intraday lows as traders reacted to the report. 2-year Treasury yields settled near the 4.40% level, while 10-year yields headed toward the 4.18% level.

The U.S. Dollar Index hit fresh intraday highs following the release of a weaker-than-expected manufacturing index report. Traders are gearing up for the upcoming federal interest rate decision on Wednesday. From a technical analysis point of view, the Dollar Index managed to break through the resistance zone of 104.40 - 104.60 and tried to stabilize above the 104.75 level.

Gold fell back below $2,385 after failing to stabilize the $2,400 mark. The strong dollar exerted pressure on the gold market.

The S&P 500 closed near 5,475 as traders watched the report. It's unclear whether the Dallas Federal Manufacturing Index report will have a significant impact on the dynamics of the S&P 500 as traders have begun to adjust their positions ahead of the federal decision.