The S&P 500 and the Nasdaq notched record high closes on Monday, lifted by Alphabet and other megacaps ahead of several earnings reports this week, while investors bet on potential trade deals to blunt economic damage from the Trump administration’s global tariffs.
Google-parent Alphabet rallied 2.7 per cent ahead of its quarterly report on Wednesday. It and Tesla, also reporting on Wednesday, kick off earnings from the so-called “Magnificent Seven”, and their results may set the tone for other heavyweight companies reporting in the next several days.
Tesla dipped 0.35 per cent, while Apple gained 0.62 per cent and Amazon rose 1.43 per cent, both lifting the S&P 500 and Nasdaq.
Verizon rallied over 4 per cent after the telecommunications company boosted its annual profit forecast.
Analysts on average expected S&P 500 companies to report a 6.7 per cent increase in earnings for the second quarter, with Big Tech driving much of that gain, according to LSEG I/B/E/S.
“So far, companies that have reported have, in general, met or beat guidance from the prior quarter, and we haven’t seen any degradation either in corporate profits or consumer spending,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
With U.S. President Donald Trump’s August 1 tariff deadline approaching, the S&P 500 is up about 8 per cent year to date, with investors betting the economic damage from tariffs will be less than feared.
U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the European Union, even as EU members explored possible countermeasures against the United States.
Trump has threatened 30 per cent tariffs on imports from Mexico and the EU, and sent letters to other trading partners, including Canada, Japan and Brazil, setting tariffs ranging from 20 per cent to 50 per cent.
The S&P 500 climbed 0.14 per cent to end the session at 6,305.60 points.
The Nasdaq gained 0.38 per cent to 20,974.18 points, while the Dow Jones Industrial Average declined 0.04 per cent to 44,323.07 points.
Seven of the 11 S&P 500 sector indexes rose, led by communication services, up 1.9 per cent, followed by a 0.6 per cent gain in consumer discretionary.
Volume on U.S. exchanges was relatively heavy, with 19.7 billion shares traded, compared to an average of 17.7 billion shares over the previous 20 sessions.
The S&P 500 has gained about 7 per cent in 2025, while the Nasdaq has climbed almost 9 per cent.
Investors focused on how tariff uncertainty is impacting the U.S. economy will scrutinize jobless claims data and the July business activity report, expected on Thursday.
They will also watch a speech by Federal Reserve Chair Jerome Powell on Tuesday for clues about when the Fed might cut interest rates, especially after mixed inflation signals last week.
Traders have largely ruled out a July rate cut, and they now see a greater than 50 per cent chance the Fed will cut by its September meeting, according to CME Group’s FedWatch tool.
Declining stocks outnumbered rising ones within the S&P 500 by a 1.7-to-one ratio.
The S&P 500 posted 17 new highs and 9 new lows; the Nasdaq recorded 97 new highs and 56 new lows.
