Tech Earnings, Trade Hopes Propel S&P, Nasdaq to New Highs

The S&P 500 together with Nasdaq achieved their highest points on Monday because investors welcomed big tech earnings season while showing cautious optimism about U.S. trade negotiations.
During the mid-morning session the S&P reached 6,315.13 while the Nasdaq rose to 21,006.05. The Dow Jones index maintained a slight upward trend although it remained 2% below its peak value.
The "Magnificent Seven" companies including Alphabet and Tesla experienced rising stock prices before their earnings announcements. The market received a positive boost from Verizon and Domino’s Pizza when they released their strong second-quarter financial results. The stock prices of Verizon and Domino’s Pizza increased by 2.2% and 2% respectively after Verizon raised its profit outlook and Domino’s exceeded sales projections.
U.S. Commerce Secretary Howard Lutnick demonstrated positive expectations about reaching a trade agreement with the EU although European officials seem to be exploring additional countermeasures because negotiations have stalled. The global market remains unsettled by President Trump's ongoing threats to impose 30% tariffs on Mexican and EU imports.
Market participants appear to prioritize the strong corporate earnings and the expanding AI industry over the current trade tensions. The near-term outlook indicates that positive technology sector results will likely dominate geopolitical challenges.
The market waits for Fed Chair Jerome Powell to speak while expecting important economic data including jobless claims and business activity reports to be released this week.

Dominic Maley is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.