Nasdaq 100 and S&P500: Record Close as Earnings Beat and Fed Meeting Looms

Wall Street Rallies as Earnings Beat Fuels Risk Appetite

U.S. equity markets closed higher Friday as traders positioned for a busy week marked by the Federal Reserve’s policy decision, key earnings from Big Tech, and a looming trade deadline set by President Trump.

The S&P 500 and Nasdaq posted new record closes, while the Dow finished just shy of its all-time high, reflecting steady investor confidence despite trade uncertainty.

Investor sentiment remained resilient, buoyed by strong earnings and economic data staying within expectations. Roughly 80% of S&P 500 companies reporting so far have beaten forecasts, lifting the outlook for second-quarter earnings growth to 7.7% from 5.8% earlier in the month, per LSEG data.

Still, traders remain watchful with President Trump’s August 1 trade deadline fast approaching and the Fed expected to keep rates unchanged in the 4.25% to 4.50% range.

Indexes Notch Weekly Gains as Global Markets Lag

The S&P 500 climbed 0.40% to 6,388.65, the Nasdaq added 0.24% to 21,108.32, and the Dow rose 0.47% to 44,901.92. Broad-based strength in U.S. equities contrasted with global softness.

The STOXX 600 in Europe slipped 0.29%, while MSCI’s Asia-Pacific index outside Japan fell 0.93%. Emerging markets underperformed, with MSCI’s EM index dropping 0.81%, reflecting unease over trade negotiations and mixed corporate results.

Tech Sector in Focus as Intel Warns and Big Tech Awaits

Intel tumbled 8.5% after issuing a weaker-than-expected forecast and shelving multiple factory projects. The move spurred caution across semiconductors.

Attention now shifts to upcoming earnings from Amazon, Apple, Meta, and Microsoft, where investors will assess progress on AI monetization and gauge the impact of global tariffs on forward guidance.

Federal Reserve Holds the Line as Market Eyes Powell’s Tone

The Fed’s upcoming policy meeting is expected to leave rates unchanged, as economic indicators point to solid growth and controlled inflation.

The 10-year Treasury yield slipped to 4.384%, signaling confidence in the Fed’s current stance. Comments from Chair Jerome Powell will be critical as traders weigh the central bank’s response to both economic data and renewed political pressure from President Trump.

Dollar Strength Weighs on Commodities and Cryptocurrencies

The dollar index rose 0.23% to 97.68, dampening appetite for commodities.

Gold dropped 0.9% to $3,337.66/oz, while WTI crude declined 1.32% to $65.16 and Brent lost 1.07% to $68.44.

Bitcoin fell 1.66% to $116,805, and Ethereum slid 2.52% to $3,645.63, reflecting broader softness across risk assets.

Market Outlook Turns to Fed Signals, Big Tech Earnings, and Trade Talks

With earnings delivering upside surprises and the Fed expected to stay on hold, markets are positioned for further gains.

However, tariff developments and Powell’s guidance will be pivotal for sustaining momentum.

Traders should monitor conference call commentary from tech giants and any escalation in trade rhetoric as catalysts for near-term direction.

More Information in our Economic Calendar.