S&P 500 and Nasdaq notch record high closes, lifted by Alphabet
Google-parent Alphabet rallied ahead of its quarterly report on Wednesday. It and Tesla, also reporting on Wednesday, kick off earnings from the so-called 'Magnificent Seven,' and their results may set the tone for other heavyweight companies reporting in the next several days.
Apple and Amazon each gained and helped lift the S&P 500.
Verizon rallied after the telecommunications company boosted its annual profit forecast.
Analysts on average expected S&P 500 companies to report a 6.7% increase in earnings for the second quarter, with Big Tech driving much of that gain, according to LSEG I/B/E/S.
'So far, companies that have reported have, in general, met or beat guidance from the prior quarter, and we haven't seen any degradation either in corporate profits or consumer spending,' said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
With U.S. President Donald Trump's August 1 tariff deadline approaching, the S&P 500 .SPX is up about 8% year to date, with investors betting the economic damage from tariffs will be less than feared.
U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the European Union, even as EU members explored possible countermeasures against the United States.
Trump has threatened 30% tariffs on imports from Mexico and the EU, and sent letters to other trading partners, including Canada, Japan and Brazil, setting tariffs ranging from 20% to 50%.
According to preliminary data, the S&P 500 .SPX gained 9.63 points, or 0.15%, to end at 6,306.42 points, while the Nasdaq Composite .IXIC gained 82.99 points, or 0.40%, to 20,978.64. The Dow Jones Industrial Average .DJI fell 3.08 points, or 0.01%, to 44,339.11.
Investors focused on how tariff uncertainty is impacting the U.S. economy will scrutinize jobless claims data and the July business activity report, expected on Thursday.
They will also watch a speech by Federal Reserve Chair Jerome Powell on Tuesday for clues about when the Fed might cut interest rates, especially after mixed inflation signals last week.
Traders have largely ruled out a July rate cut, and they now see a greater than 50% chance the Fed will cut by its September meeting, according to CME Group's FedWatch tool.
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