Nasdaq 100 and Dow Jones: AI Tech, Healthcare Rise Ahead of Fed and Earnings Forecast

Nasdaq and Dow Edge Higher as Traders Brace for Fed and Earnings Wave

Wall Street ticked higher in midday trading Friday, with the Nasdaq, S&P 500, and Dow Jones Industrial Average all logging moderate gains as traders positioned for a high-stakes week.

Investor focus turned to upcoming earnings from key tech giants and the Federal Reserve’s policy stance, with market optimism buoyed by strong corporate earnings and expectations the Fed will hold rates steady.

Is AI Momentum Powering the Nasdaq 100?

The Nasdaq 100 advanced 85.86 points, or 0.41%, supported by broad-based tech strength.

Tesla led index gainers, jumping over 5% as bullish sentiment returned to the EV space.

Other AI-related names followed suit—Palantir climbed 3.1%, while AMD and Arm Holdings added over 2%.

Chipmakers Cadence Design and Dexcom also rose more than 2%, reflecting solid investor appetite in high-growth segments.

However, not all tech names participated in the rally. Intel fell sharply by nearly 9% following weak guidance, and ASML slipped 2% as concerns about semiconductor demand lingered.

Charter Communications sank over 17%, the session’s steepest loss, on disappointing earnings.

Dow Inches Up as Healthcare and Consumer Giants Climb

The Dow added 116 points, or 0.26%, driven by strength in healthcare and consumer names.

UnitedHealth rose 1.6%, while Walmart gained just over 1% after upbeat sales forecasts.

Financials also contributed, with Goldman Sachs and American Express up nearly 1%. Microsoft and Salesforce added modest support to the index.

Losses were muted but widespread among traditional defensive names. Johnson & Johnson and Procter & Gamble both declined around 1%, and IBM slipped 0.8%. Energy giant Chevron and Disney also posted modest losses as traders remained cautious ahead of next week’s data-heavy calendar.

How Are Earnings and the Fed Driving Sentiment?

So far, over a third of S&P 500 companies have reported, with 80% beating estimates—lifting expectations for Q2 earnings growth to 7.7%, up from 5.8% earlier this month. Key tech earnings next week—Amazon, Apple, Meta, and Microsoft—will be scrutinized for clues on AI investment returns and margin outlooks under tariff pressures.

On the economic front, new orders for core capital goods declined unexpectedly, suggesting business investment may be slowing as trade uncertainties persist. The Federal Reserve meets next week and is widely expected to leave rates unchanged at 4.25%–4.50%. Still, market participants will watch for commentary on inflation and rate-cut prospects, especially after recent criticism of Fed Chair Powell by President Trump.

Market Outlook: What Should Traders Watch?

With the major indexes on track for weekly gains, next week’s developments could test the market’s resilience. Traders should watch for earnings from the Magnificent 7, especially commentary on AI spending and margin forecasts. Additionally, clarity from the Fed on rate direction and economic conditions will be key for short-term positioning. Volatility may rise as data and geopolitical events collide with corporate earnings in a high-stakes stretch for risk assets.

More Information in our Economic Calendar.