US stock markets surged to record highs as Alphabet and other megacaps boosted investor confidence ahead of key earnings reports. Traders also eyed potential trade deals to soften the impact of looming global tariffs.
Alphabet shares jumped 2.7% as investors anticipated strong results in its upcoming quarterly report. Tesla, which also reports soon, dipped 0.35%. Meanwhile, Apple rose 0.62% and Amazon gained 1.43%, helping the S&P 500 and Nasdaq climb higher. Verizon rallied over 4% after raising its annual profit forecast, fueling further optimism in the markets.
Analysts project S&P 500 companies will deliver a 6.7% earnings increase for the second quarter. Big Tech remains the primary driver of this growth, reflecting strong consumer demand and robust corporate profits across major sectors.
US stock markets have performed strongly this year, with the S&P 500 up nearly 8% and the Nasdaq advancing around 9%. Many investors believe trade agreements could reduce economic risks from the Trump administration’s proposed tariffs.
President Trump threatened tariffs between 20% and 50% on imports from the EU, Mexico, Japan, and other trading partners. However, US Commerce Secretary Howard Lutnick expressed confidence about securing a deal with the EU, even as EU nations consider countermeasures.
The S&P 500 ended 0.14% higher at 6,305.60 points. The Nasdaq gained 0.38% to close at 20,974.18. The Dow Jones Industrial Average slipped slightly by 0.04% to finish at 44,323.07. Seven of the S&P 500’s 11 sector indexes posted gains. Communication services led with a 1.9% rise, followed by a 0.6% gain in consumer discretionary.
Market volume remained strong, with 19.7 billion shares changing hands compared to a 20-session average of 17.7 billion. Within the S&P 500, declining stocks outnumbered gainers by a ratio of 1.7 to one. Even so, the index recorded 17 new highs versus 9 new lows. The Nasdaq posted 97 new highs and 56 new lows, showing continued market strength.
Investors now await key economic reports, including jobless claims and July’s business activity data. They are also watching for Federal Reserve Chair Jerome Powell’s upcoming speech, which could offer clues about potential interest rate cuts later this year.
US stock markets remain resilient as traders weigh mixed inflation signals and adjust their expectations for monetary policy shifts. Many strategists advise staying focused on long-term growth opportunities while navigating short-term volatility.
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