S&P 500, NASDAQ closes record highs in trade deal hopes
All three major US stock indexes recorded weekly profits, confirming that the technological Nasdaq has entered the bull market since the trough on March 8th “liberation day” .
Wall Street stocks were mixed on July 22, with sharp losses at general Motors and earnings at Tesla, which have seen investors watched signs of progress in the US trade debate, focusing on recent and upcoming quarterly reports.
GM fell after the automaker reported a $1 billion hit from tariffs in quarterly results, adding more investor concerns about US President Donald Trump’s global trade policy. Ford Motor stocks also fell.
Tesla climbed a day before its quarterly report, but the alphabet also reported it on Wednesday.
Optimism about massive spending on artificial intelligence supports gatherings at Wall Street’s most valuable businesses, with the S&P 500 at its record highs.
“The market has consolidated recent earnings, and it’s a bit of a holding pattern with some big catalysts over the next week or two, including the August 1 tariff deadline and many important spectacular seven revenues,” said Ross Mayfield, investment strategy analyst at Baird.
Other big tech stocks lost ground, with both metaplatforms and Microsoft going low.
RTX stocks fell after aerospace and defense giant T from Trump’s trade war despite strong demand for engines and aftermarket services.
Lockheed Martin fell after quarterly profits plummeted about 80%.
US trade policy remains a major point of uncertainty for investors and businesses, as the August 1 deadline for many countries to reach a White House approach and agreement, and Trump’s voluntary August 1 deadline.
US Treasury Secretary Scott Bescent said he will meet his Chinese counterpart next week to discuss an extension of the tariff deadline for imports from China.
Other trade negotiations appeared to be stagnant, with optimism of landmark deals with India and groundbreaking deals with EU officials overwhelmed measures against the US.
According to preliminary data, the S&P 500 finished with 4.30 points (0.07%) at 6,309.90 points, while the Nasdaq Composite lost 81.24 points (0.39%) at 20,892.93. The Dow Jones industrial average rose 175.77 points (0.40%) to 44,498.84.
Philip Morris collapsed after reporting lower-than-expected second-quarter earnings as Zyn nicotine pouch shipments disappointed investors.
Analyst predicted on average that S&P 500 companies would report a 7% increase in second quarter revenue. According to LSEGI/B/E/s, the technology heavyweight drove many of its benefits.
After mixing economic data from last week, traders ruled out interest rate cuts from the US Federal Reserve at next week’s policy meeting. According to CME’s FedWatch tool, they could now be reduced about 60% in September.
