U.S. stocks close higher on continuous optimism
The Dow Jones Industrial Average climbed 0.47 percent to 44,901.92. The S&P 500 gained 0.4 percent to reach a new high of 6,388.64. The Nasdaq Composite rose 0.24 percent to end at 21,108.32, marking its 15th record close of 2025.
Most sectors in the S&P 500 ended the day in positive territory, with materials and industrials leading the gainers by rising 1.17 percent and 0.98 percent, respectively. Energy and communication services declined slightly.
The market's recent rally has been driven in large part by a better-than-expected earnings season. Alphabet's growth contributed to investor optimism, and Verizon also rose after posting earnings that surpassed expectations.
As of now, 169 S&P 500 companies have reported earnings, with more than 82 percent beating analysts' forecasts, according to FactSet.
Among megacap tech stocks, Tesla rebounded with a 3.52 percent gain after a steep drop the previous day. Microsoft, Apple, Alphabet and Broadcom also advanced modestly, while Nvidia, Meta Platforms and Amazon edged lower.
"The bull market lives on, supported largely by favorable fundamentals," Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told CNBC. "Inflation is stable, interest rates are range-bound and earnings are trending higher, and that presents a favorable backward drop for stocks to trend higher. We still look for a risk-on bias to be intact as we move through this earnings season."
Looking ahead, a busy week is expected, with major tech earnings on deck: more than 150 S&P 500 companies, including Microsoft, Apple, Amazon and Meta, are all set to report their earnings next week. A decision from the Federal Reserve on interest rates will be made, and key reports on economic growth and inflation are going to be focused.
Additionally, markets are anticipating potential trade announcements ahead of the Aug. 1 deadline, when the United States is scheduled to impose steep tariffs.
U.S. President Donald Trump indicated Friday that more deals could be finalized in the coming days, and European Commission President Ursula von der Leyen confirmed plans to meet with Trump in Scotland on Sunday to discuss trade.
"Tariffs remain an item of uncertainty, and commentary from companies still reflects this ongoing uncertainty," Sandven said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Bursa Malaysia ends morning session marginally higher
KUALA LUMPUR: Bursa Malaysia ended the morning trading session marginally higher, rising by 0.29 per cent, driven by buying interest in selected heavyweight stocks, particularly in the financial services and industrial products and services sectors. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.46 points to 1,538.22, from Friday's close of 1,533.76. The benchmark index had opened 4.29 points firmer at 1,538.05 and moved between 1,531.28 to 1,539.38 throughout the session. However, the broader market sentiment was slightly bearish, with losers edging past gainers 416 to 396, while 459 counters were unchanged, 1,281 untraded, and 43 suspended. Turnover stood at 1.78 billion units worth RM992.39 million. In a note today, Hong Leong Investment Bank Bhd (HLIB) said investors are expected to trade cautiously ahead of the upcoming United States (US) Federal Reserve meeting and President Donald Trump's Aug 1 tariff deadline. It noted that the US and European Union (EU) agreed on a hard-fought deal that will see the bloc face 15 per cent tariffs on most of its exports, staving off a trade war that could have delivered a hammer blow to the global economy. "Additionally, caution may prevail amid expectations of a soft US August earnings season and the FBM KLCI's seasonal underperformance. Domestic headwinds from subsidy rationalisation and the potential Sales and Services Tax expansion could further dampen consumer sentiment and earnings visibility. "Therefore, we expect the local benchmark index to trade range-bound between 1,518 and 1,551 this week,' it said. Among the heavyweights, Maybank and CIMB gained eight sen each to RM9.62 and RM6.83, respectively, and Press Metal Aluminium garnered nine sen to RM5.43, while Tenaga Nasional lost 10 sen to RM13.50 and Hong Leong Bank slipped 12 sen to RM19.24. As for the actives, Tanco added one sen to 92.5 sen, NexG and Sapura Energy both inched up half-a-sen to 53 sen and four sen, respectively, Ekovest grew three sen to 43 sen and YTL Corporation advanced five sen to RM2.53. Among the top gainers, Nestle improved RM1.88 to RM87.38, Sam Engineering and Equipment edged up 14 sen to RM4.21 and Allianz Malaysia bagged 12 sen to 69 sen. Top losers United Plantations slipped 28 sen to RM21.94 and Petronas Dagangan was 20 sen lower at RM21.50. Across the broader market, the FBM Emas Index strengthened 33.02 points to 11,539.84, the FBMT 100 Index went up 30.36 points to 11,300.08, and the FBM Emas Shariah Index rose 15.77 points to 11,544.75. The FBM 70 Index climbed 34.19 points to 16,641.76, while the FBM ACE Index edged up 10.40 points to 4,649.42 Sector-wise, the Financial Services Index jumped 74.68 points to 17,528.91, the Industrial Products and Services Index was 1.27 points higher at 158.41, and the Energy Index ticked up 2.44 points to 742.29, while the Plantation Index lost 11.70 points to 7,423.09. - Bernama
The Star
2 hours ago
- The Star
Trump pauses export controls to bolster China trade deal, FT says
Container vessels in Suzhou, China. — AFP The U.S. has paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support President Donald Trump's efforts to secure a meeting with President Xi Jinping this year, the Financial Times said on Monday. The industry and security bureau of the Commerce Department, which oversees export controls, has been told in recent months to avoid tough moves on China, the newspaper said, citing current and former officials. Reuters could not immediately verify the report. The White House and the department did not respond to Reuters' requests for comment outside business hours. Top U.S. and Chinese economic officials are set to resume talks in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies. Tech giant Nvidia said this month it would resume sales of its H20 graphics processing units (GPU) to China, reversing an export curb the Trump administration imposed in April to keep advanced AI chips out of Chinese hands over national security concerns. The planned resumption was part of U.S. negotiations on rare earths and magnets, Commerce Secretary Howard Lutnick has said. The paper said 20 security experts and former officials, including former deputy US national security adviser Matt Pottinger, will write on Monday to Lutnick to voice concern, however. "This move represents a strategic misstep that endangers the United States' economic and military edge in artificial intelligence," they write in the letter, it added. - Reuters
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Hungary's Orban says he will not back EU budget unless funds released
Hungarian Prime Minister Viktor Orban has clashed with Brussels over his policies on migration and LGBTQ rights. (AFP pic) BUDAPEST : Hungary's government will not support the EU's new seven-year budget unless Brussels unlocks all suspended funds, prime minister Viktor Orban said on Saturday. In the past 15 years, the nationalist leader has clashed with Brussels over his policies on migration, curbing LGBTQ rights and what critics see as eroding democracy in Hungary. The EU has suspended billions of euros in funds earmarked for Hungary while a rule-of-law dispute drags on. 'The approval of the new seven-year budget requires unanimity and until we get the remaining (frozen) funds, there won't be a new EU budget either,' Orban said in a speech at a summer university in the Romanian town of Baile Tusnad. He also criticised the EU for supporting Ukraine and accused Brussels of planning to install a 'pro-Ukraine and pro-Brussels government' in Hungary at next year's national vote. He also said the EU's current leadership has put the bloc on a track that would lead to a trade war that Europe 'cannot win'. 'The current leadership of the EU will always be the last to sign deals with the US and always the worst deals,' Orban added, urging a change in the bloc's leadership. European Commission president Ursula von der Leyen will meet US President Donald Trump on Sunday in Scotland after EU officials and diplomats said they expected to reach a framework trade deal this weekend. The European Commission earlier this month proposed a €2 trillion EU budget for 2028 to 2034, with a new emphasis on economic competitiveness and defence. Then Orban said 'globalist bureaucrats' were plotting to 'drain Europe's money into Ukraine' while 'our farmers are rising up to defend their future'. Budget debates are among the most difficult in EU politics, bringing to the fore political and economic divisions among member countries. Orban, who swept the last four elections, faces a tough new opposition challenger in 2026, whose Tisza party has a firm lead over the ruling Fidesz party in most polls, at a time when the economy is stagnating. But Orban looked confident in his speech and said according to his party's internal data Fidesz would win in 80 out of Hungary's 106 constituencies if elections were held on Sunday.
