FX.co ★ Tech Gains Lift S&P 500 and Nasdaq to New Highs

On Monday, the S&P 500 and Nasdaq 100 notched new record highs, advancing by 0.1% and 0.5%, respectively, as strong corporate earnings provided a counterbalance to ongoing trade tensions. Conversely, the Dow Jones Industrial Average closed 18 points lower. The rally was largely driven by gains in major technology firms, such as Alphabet, Amazon, and Meta. Notably, Alphabet’s shares increased by 2.7% ahead of its earnings announcement slated for Wednesday. Additionally, Verizon shares surged by 4% in response to a robust quarterly report, reinforcing optimism about sustained earnings growth. As of now, more than 85% of S&P 500 companies that have released their earnings have surpassed expectations, with substantial contributions from Big Tech anticipated to support a projected 6–7% growth in earnings for the quarter. Investor sentiment remained positive despite the uncertainty surrounding tariffs. Commerce Secretary Howard Lutnick reaffirmed August 1 as the "hard deadline" for compliance, though negotiations may extend beyond that date. Simultaneously, the European Union is considering potential countermeasures should a trade deal not be finalized, adding a layer of geopolitical tension.