S&P500 and Nasdaq 100: Stocks Edge Higher on Tech Momentum Ahead of GameStop Earnings

Stocks Inch Higher as Traders Track U.S.-China Trade Talks and Tech Gains

U.S. stocks ticked up midday Tuesday as market participants looked for clarity from ongoing U.S.-China trade discussions and reacted to positive momentum in tech and selective corporate names. The Dow edged up 0.1%, while the S&P 500 and Nasdaq both gained about 0.3%.

Trade talks between U.S. and Chinese officials continued in London, with Commerce Secretary Howard Lutnick calling the discussions productive. Market sentiment remains cautiously optimistic that both sides will avoid reinstating heavy tariffs after agreeing to ease some duties last month. The ongoing dialogue has helped sustain June’s rally, underpinned by strong corporate earnings and enthusiasm in AI-linked tech stocks.

Are Tech Stocks and AI Buzz Reigniting Market Momentum?

Technology stocks continue to attract buyers, with many names breaking past downtrend levels. Analysts point to improving technical setups and favorable risk/reward entry zones, especially for AI-focused firms. Traders are treating recent dips as buying opportunities, encouraged by broader strength in key benchmarks.

Apple recovered modestly following Monday’s underwhelming AI reveal at its WWDC. Tesla extended gains, up more than 3% after a public endorsement from President Trump regarding Elon Musk and Starlink, adding to a more than 4% rally the day before. Meanwhile, Taiwan Semiconductor rose over 1% on a 39.6% year-over-year revenue jump in May.

Which Companies Are Driving Midday Moves in the Broader Market?

A few standout stocks drew outsized attention. Topgolf Callaway jumped 5% after a director increased holdings, building on Monday’s 15% surge. Insmed soared over 26% on favorable Phase 2b trial results, while rival United Therapeutics fell more than 15%. SolarEdge gained 12% as tech giants pushed lawmakers to preserve clean energy subsidies; UBS also boosted its price target.

On the downside, J.M. Smucker dropped 13% on a revenue miss and weaker guidance. Calavo Growers fell 17% after disappointing earnings. McDonald’s lost over 1% following a rare double downgrade citing lower traffic and pricing risks tied to weight-loss drugs.

Is Inflation Risk From Tariffs a Concern for the Fed?

While tariff relief has supported equities, inflation concerns linger. Siebert Financial’s Mark Malek warned the full inflationary effects from existing tariffs may not yet be visible. Categories like autos, apparel, and food could soon reflect these pressures. Traders are watching how this risk feeds into the Federal Reserve’s rate outlook.

What’s Next for Markets Heading Into GameStop’s Earnings?

Markets may respond to after-hours headlines as GameStop reports Q1 results. With expectations for a modest profit and a 15% revenue drop, investors will focus on commentary around the company’s Bitcoin holdings and turnaround efforts. Broader sentiment will also remain tied to any fresh signals from the trade talks and how inflation impacts Fed policy projections heading into next week.

More Information in our Economic Calendar.