S&P 500 notches record high close on optimism about trade deals
The White House's deal with the European Union would include a broad tariff of 15% on EU goods imported into the U.S., two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan.
The benchmark S&P 500 has now climbed about 8% in 2025.
"The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report.
Shares of GE Vernova (GEV.N), opens new tab surged to an all-time high after the power equipment maker raised its revenue and free cash flow forecasts and beat Wall Street estimates for second-quarter profit. GE Vernova has gained over 80% so far in 2025, with power consumption on track to hit due to growing demand from AI and cryptocurrency data centers.
Heavyweight AI chipmaker Nvidia (NVDA.O), opens new tab climbed and fueled gains in the S&P 500 and Nasdaq.
Tesla (TSLA.O), opens new tab swung between losses and gains ahead of its quarterly report due after the closing bell. Investors will focus on the electric vehicle maker's analyst conference call. They have braced for Tesla to report a steep drop in revenue related to mounting competition, a lack of new car models and a consumer backlash against CEO Elon Musk.
"What you will hear is an awful lot of discussion about the future and a broad acknowledgement that this was a terrible quarter," said Michael Green, chief strategist at Simplify Asset Management in Philadelphia.
Alphabet (GOOGL.O), opens new tab dipped, with the Google parent also set to report results after the close of trading.
According to preliminary data, the S&P 500 (.SPX), opens new tab gained 49.93 points, or 0.80%, to end at 6,359.91 points, while the Nasdaq Composite (.IXIC), opens new tab gained 127.33 points, or 0.61%, to 21,023.67. The Dow Jones Industrial Average (.DJI), opens new tab rose 511.35 points, or 1.15%, to 45,013.79.
Wall Street's "fear gauge", the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in over five months.
Analysts on average expect S&P 500 companies to report a 7.5% increase in earnings for the second quarter, according to LSEG I/B/E/S. Microsoft (MSFT.O), opens new tab, Nvidia and other technology heavyweights that have seen their valuations soar due to their leadership in AI are expected to drive much of that quarterly earnings growth.
Medical equipment maker Thermo Fisher (TMO.N), opens new tab surged after beating Wall Street's estimates for second-quarter profit and revenue.
Texas Instruments (TXN.O), opens new tab tumbled after its quarterly profit forecast pointed to weaker-than-expected demand for its analog chips and underscored tariff-related uncertainty.
Texas Instruments' report weighed on other analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab losing ground.
In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties.
Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool.
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