
Nasdaq, S&P hit record levels as megacaps rise ahead of tech earnings
At 11:21 a.m. ET, the S&P 500 gained 34.97 points, or 0.56 per cent, to 6,331.90 and the Nasdaq Composite gained 147.24 points, or 0.71 per cent, to 21,042.87.
The Dow Jones Industrial Average rose 201.87 points, or 0.46 per cent, to 44,544.76, just 1.28 per cent shy of its all-time high.
Verizon gained 4.1 per cent after boosting its annual profit forecast. The stock also drove up the communications sector, which emerged as the top gainer among other sectors.
Most big-tech names moved higher, pushing the S&P's information technology sector up 0.6 per cent to hit an all-time high.
The spotlight was on Google-parent Alphabet and electric-vehicle maker Tesla, whose results this week will kick off the "Magnificent Seven" earnings parade, and could set the tone for Wall Street.
Shares of Alphabet rose 2.1 per cent, while Tesla dipped 0.2 per cent. Both stocks have lagged their peers so far this year, with Tesla down 18.5 per cent year to date and Alphabet slipping 0.2 per cent.
"It is going to be interesting to see the Tesla and Google reports," because those two are kind of "underachievers in the Mag 7 this year," said Mike Dickson, head of research at Horizon Investments.
"We're going to need these earnings reports to just really knock it out of the park if we want to see this little leg of the rally continue."
Despite U.S. President Donald Trump's August 1 tariff deadline, the S&P 500 and the Nasdaq reached new heights recently as investors believed that the economic fallout from tariffs might not be as dire as once feared.
Trump has threatened to slap 30 per cent tariffs on imports from Mexico and the EU, and sent letters to other trading partners, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent to 50 per cent.
Investors were expecting some progress in trade talks after U.S. Commerce Secretary Howard Lutnick on Sunday expressed confidence over striking a trade deal with the European Union.
However, EU diplomats said the 27-member bloc is exploring a broader set of possible counter-measures against the United States, as hopes for a breakthrough deal with Washington dwindled.
On the economic data front, investors will keep a close eye on jobless claims figures and the July business activity report, expected on Thursday.
They will also closely analyze Federal Reserve Chair Jerome Powell's remarks on Tuesday for any clues on the central bank's next move, especially after last week's mixed inflation signals.
Traders have largely ruled out a July rate cut, and are now pegging the odds at about 56 per cent for a September reduction, according to CME Group's FedWatch tool.
Advancing issues outnumbered decliners by a 3.02-to-1 ratio on the NYSE, and by a 2.58-to-1 ratio on the Nasdaq.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNA
38 minutes ago
- CNA
Intel to separate networking unit
Intel said on Friday it planned to establish its networking and communications business as a stand-alone company and has begun the process of identifying investors, as new CEO Lip-Bu Tan looks to streamline the struggling chipmaker.


CNA
an hour ago
- CNA
Spear AI raises first round of funding to apply AI to submarine data
SAN FRANCISCO :A startup founded by U.S. Navy veterans aiming to help the U.S. military use artificial intelligence to decipher data gathered by submarines has raised its first round of outside capital. Washington-based Spear AI specializes in working with what is known as passive acoustic data, which is gathered by listening devices underwater. Its long-term aim is to use AI to help submarine operators understand whether an object heard could be a rain squall, a whale, or a vessel that could be a threat, and to detect where it is and how fast it is moving. The challenge is that most existing AI tools are trained on data such as words or images that have been painstakingly labeled and organized over years or decades by companies such as Scale AI, which recently signed a $14.8-billion deal with Meta Platforms. Data from acoustic sensors is different. Spear AI co-founders Michael Hunter, a former U.S. Navy SEAL analyst, and John McGunnigle, a former nuclear submarine commander for the U.S. Navy, are building a hardware and software platform that aims to prepare that data for AI algorithms. The company sells sensors that can be attached to buoys or vessels and a software tool to help label and sort the data gathered by the sensors to make it ready to be put into AI systems. The U.S. Navy this month awarded Spear AI a $6-million contract for its data-labeling tool. Spear AI, founded in 2021, has been self-funded and has about 40 employees. Hunter, the CEO, said it raised $2.3 million from AI-focused venture firm Cortical Ventures and private equity firm Scare the Bear. The funding will be used to double the company's headcount to support its government contracts and commercial business prospects, such as monitoring underwater pipelines and cables. Hunter said Spear AI also aims to sell consulting services, a model similar to defense tech firm Palantir. "We wanted to build the product and actually get it out the door before the contract came in to get it," Hunter told Reuters. "The only way you can do that is with private capital."


CNA
2 hours ago
- CNA
US closes probe into Waymo self-driving collisions, unexpected behavior
WASHINGTON :The National Highway Traffic Safety Administration said on Friday it has closed a 14-month investigation into a series of minor collisions and unexpected behavior from Alphabet's Waymo self-driving vehicles without taking further action. The U.S. auto safety regulator in May 2024 opened an investigation after 22 reports about Waymo robotaxis exhibiting driving behavior that potentially violated traffic safety laws, or demonstrating other "unexpected behavior," including 17 collisions. NHTSA cited two recalls issued by Waymo and the agency's analysis of available data in closing the investigation, including a 2024 recall to address a collision with a utility pole. The agency also cited Waymo's May recall of more than 1,200 vehicles that updated software to improve detection and avoidance of roadway barriers, such as chains strung across the path of travel, gates, and other gate-like roadway barriers. "At Waymo we are committed to prioritizing safety and we're pleased that NHTSA has concluded their investigation and closed our case," a spokesperson said Friday. NHTSA's probe covered potential traffic safety law violations by Waymo vehicles and unexpected responses to traffic control devices and issues when entering construction zones. The agency said last year that several incidents "involved collisions with clearly visible objects that a competent driver would be expected to avoid." Waymo has over 1,500 vehicles on the road across San Francisco, Los Angeles, Phoenix and Austin, Texas, and is running more than 250,000 fully autonomous paid rides a week. It hopes to add service in New York, Miami and Washington, D.C. and launched service with Uber last month in Atlanta. Self-driving vehicle companies, including Waymo and General Motors have come under increased regulatory scrutiny following a 2023 incident where a pedestrian was seriously injured by a Cruise vehicle. GM cut Cruise's funding and folded it into its broader operations.