The S&P 500 and Nasdaq reached fresh all-time highs on Monday, buoyed by investor optimism over upcoming tech earnings and potential progress in trade negotiations. By mid-morning, the S&P 500 had risen 0.29% to 6,315.13, and the Nasdaq gained 0.53% to 21,006.05. The Dow Jones inched up 0.09%, nearing its record high.
Investors are eyeing developments in U.S.-EU trade talks, especially after U.S. Commerce Secretary Howard Lutnick expressed confidence in a deal, though EU officials remain skeptical and are preparing countermeasures. President Trump’s broad tariff threats (ranging from 20% to 50% on countries like Mexico, Canada, Japan, and Brazil) continue to cast uncertainty over global markets.
Despite tariff tensions, confidence in the resilience of corporate earnings has lifted sentiment. Key reports from Alphabet and Tesla, part of the "Magnificent Seven" tech stocks, are expected to shape Wall Street’s direction. Both stocks rose modestly in early trading.
Verizon jumped 2.2% after raising its annual profit outlook, pushing the communications sector to lead gains. Domino’s Pizza also saw a 2% boost after beating Q2 U.S. same-store sales estimates.
While economic data remains light this week, investors will be closely watching Fed Chair Jerome Powell’s Tuesday comments for any guidance on interest rate policy. Traders now see a 60% chance of a rate cut in September, following mixed inflation signals.
Advancers led decliners across major indexes, with the Nasdaq posting 41 new 52-week highs.
