S&P500 and Nasdaq 100: Bullish Forecast as Earnings Fuel Record-Breaking Rally

S&P 500 Extends Record Run as Earnings Season Delivers

S&P 500 futures added 0.1% in Friday’s pre-market session, with Nasdaq-100 futures gaining similar ground while Dow futures climbed 14 points. The benchmark index is tracking for a 0.6% weekly gain, with the Nasdaq outperforming at 1.5% and the Dow posting a modest 0.3% advance.

Thursday’s session delivered fresh record highs across major indices, with the S&P 500 gaining 0.5% and the Nasdaq adding 0.7%. Strong earnings beats from major corporates continue fueling the rally, with traders finding little reason to fade the momentum.

Can Big Tech Sustain This Momentum?

Netflix shares dropped 2% after hours despite beating top and bottom line estimates for Q2. The streaming giant’s warning about compressed operating margins in H2 2025 due to higher content costs spooked investors.

Meanwhile, crypto-related stocks surged as ether hit six-month highs following Congress passing the first major U.S. crypto legislation. Coinbase and Circle gained 2%, while Galaxy Digital rallied 9%.

Industrial Earnings Paint Mixed Picture

3M shares jumped 2% after delivering Q2 adjusted EPS of $2.16, crushing the $2.01 consensus estimate. The industrial giant raised full-year sales growth guidance to 2.5% from 0.5%, signaling confidence in manufacturing demand.

Chevron gained 3% while Hess soared 7% after Chevron won its dispute with Exxon over Guyana oil assets, clearing the path for the $53 billion acquisition.

Financial Sector Shows Broad Strength

Interactive Brokers led financial gainers with a 5% jump after beating estimates with 51 cents EPS versus 46 cents expected. Charles Schwab added 2% on strong Q2 results, reporting 11% year-over-year growth in new account openings.

American Express gained 1% after posting $4.08 EPS against $3.89 consensus, demonstrating consumer spending resilience.

Railroad Consolidation Sparks Sector Interest

Union Pacific and Norfolk Southern moved higher on merger speculation, with Norfolk Southern gaining 4% after reports that Union Pacific is exploring a potential deal. The railroad sector has been consolidating as operators seek scale advantages in freight transportation.

Market Forecast: Bulls Maintain Control

Technical momentum remains firmly bullish with the S&P 500 establishing new support levels above previous resistance. Strong earnings beats across sectors, combined with resilient economic data, support continued upside potential.

Traders should monitor any rotation between growth and value sectors, but the underlying trend favors continued gains. Key resistance levels to watch include the next psychological barriers as indices push into uncharted territory.

More Information in our Economic Calendar.