GLOBAL MARKETS-Wall Street, dollar firms ahead of a big week for market risk

By Stephen Culp

NEW YORK, July 25 (Reuters) - Wall Street and the dollar firmed on Friday as investors girded themselves for the week ahead, which includes a Federal Reserve policy meeting, crucial corporate results and U.S. President Donald Trump's August 1 deadline for negotiating trade deals.

"Some deals will be done and talks will continue, and Trump may push out the deadline further," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "Trump's process is to shock and then be reasonable in terms of tariffs."

All three indexes were modestly green in early trading, and were on course for weekly gains.

Gold lost some shine, pressured by the dollar as healthy risk appetites lured investors away from the safe-haven metal.

With Trump's negotiating deadline just a week away, the U.S. and its trading partners are scrambling to reach trade agreements, with European negotiators heartened by the deal with Japan announced on Tuesday.

Intel's shares INTC.O dropped 8.8% after the chipmaker forecast steeper-than-expected quarterly losses and said it had halted or scrapped new factory projects in the U.S. and Europe.

More than a third of the companies in the S&P 500 have posted results, 80% of which have beaten estimates, according to LSEG data.

Analysts now expect year-on-year second-quarter earnings growth of 7.7%, compared with the 5.8% estimate as of July 1.

Four members of the Magnificent 7 group of Artificial Intelligence-related megacap stocks - Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O are on next week's earnings docket, and market participants will scrutinize the companies' conference calls for signs that AI expenditures are beginning to pay off and whether tariff-related uncertainties continue to weigh on forward guidance.

U.S. economic data released on Friday showed an unexpected decline in new orders for core capital goods, as companies hold back on big ticket purchases amid the fog of ongoing trade talks.

The Fed is expected to convene next week for its two-day monetary policy meeting, which is expected to culminate in a decision to let its federal funds target rate stand in the 4.25% to 4.50% range. The meeting comes at a moment in which Fed Chair Jerome Powell is facing criticism from Trump for not cutting rates.

"I don't expect Powell to change what he does, nor should he," Ghriskey added. "The idea of lower interest rates should scare us because Fed has had this huge job of bringing down inflation, and to ease rates at this point is clearly going to be inflationary."

The Dow Jones Industrial Average .DJI rose 113.54 points, or 0.25%, to 44,806.30, the S&P 500 .SPX rose 16.19 points, or 0.26%, to 6,379.67 and the Nasdaq Composite .IXIC rose 44.40 points, or 0.21%, to 21,102.36.

European shares gave back some of the previous session's gains as market participants parsed mixed corporate earnings and awaited developments in the U.S.-EU trade negotiations.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 1.01 points, or 0.11%, to 940.34.

The pan-European STOXX 600 .STOXX index fell 0.29%, while Europe's broad FTSEurofirst 300 index .FTEU3 fell 5.34 points, or 0.24%.

Emerging market stocks .MSCIEF fell 10.36 points, or 0.82%, to 1,256.93. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed lower by 0.95%, to 661.07, while Japan's Nikkei .N225 fell 370.11 points, or 0.88%, to 41,456.23.

U.S. Treasury yields drifted higher in a subdued trading as investors braced for a data-heavy week, updates on U.S. trade talks, and a Federal Reserve policy meeting.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 0.2 basis points to 4.41%, from 4.408% late on Thursday.

The 30-year bond US30YT=RR yield rose 0.5 basis points to 4.9543% from 4.949% late on Thursday.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 0.6 basis points to 3.919%, from 3.925% late on Thursday.

The dollar gained strength but remained on course for its biggest drop in a month as investors focused on tariff negotiations and central bank meetings on the calendar for next week.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.28% to 97.72, with the euro EUR= down 0.2% at $1.173.

Against the Japanese yen JPY=, the dollar strengthened 0.4% to 147.57.

In cryptocurrencies, bitcoin BTC= fell 3.08% to $115,133.22. Ethereum ETH= declined 2.63% to $3,641.43.

Oil prices softened as investors mulled the global demand outlook and a potential supply increase from Venezuela.

U.S. crude CLc1 fell 0.56% to $65.63 a barrel and Brent LCOc1 fell to $68.91 per barrel, down 0.39% on the day. O/R

Gold prices dropped in opposition to the firming dollar, amid growing optimism surrounding U.S.-EU trade talks.

Spot gold XAU= fell 0.93% to $3,336.52 an ounce. U.S. gold futures GCc1 fell 0.85% to $3,342.50 an ounce.