Nasdaq, S&P hit record levels as megacaps rise ahead of tech earnings
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Nasdaq, S&P hit record levels as megacaps rise ahead of tech earnings
The Dow Jones Industrial Average rose 201.87 points, or 0.46%, to 44,544.76, just 1.28% shy of its all-time high. Most big-tech names moved higher, pushing the S&P’s information technology sector (.SPLRCT) up 0.6%.Shares of Alphabet rose 2.1%, while Tesla dipped 0.2%. Both stocks have lagged their peers so far this year, with Tesla down 18.5% year to date and Alphabet slipping 0. 2%. Investors will keep a close eye on jobless claims figures and the July business activity report, expected on Thursday. They will also closely analyze Federal Reserve Chair Jerome Powell’s remarks on Tuesday for any clues on the central bank’s next move, especially after last week’s mixed inflation signals.
Item 1 of 2 Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 21, 2025. REUTERS/Brendan McDermid
Summary
Companies Indexes up: Dow 0.46%, S&P 500 0.56%, Nasdaq 0.71%
EU to ramp up retaliation plans as US tariff deal prospects dim
Verizon boosts annual profit forecast, shares rise
July 21 (Reuters) – The S&P 500 and the Nasdaq reached new record highs on Monday, bolstered by gains in megacaps as investors geared up for the week’s major tech earnings, while the prospects of fresh trade deals also boosted sentiment.
Sign up here.
The Dow Jones Industrial Average (.DJI) , opens new tab rose 201.87 points, or 0.46%, to 44,544.76, just 1.28% shy of its all-time high.
Most big-tech names moved higher, pushing the S&P’s information technology sector (.SPLRCT) , opens new tab up 0.6% to hit an all-time high.
Shares of Alphabet rose 2.1%, while Tesla dipped 0.2%. Both stocks have lagged their peers so far this year, with Tesla down 18.5% year to date and Alphabet slipping 0.2%.
“It is going to be interesting to see the Tesla and Google reports,” because those two are kind of “underachievers in the Mag 7 this year,” said Mike Dickson, head of research at Horizon Investments.
“We’re going to need these earnings reports to just really knock it out of the park if we want to see this little leg of the rally continue.”
Despite U.S. President Donald Trump’s August 1 tariff deadline, the S&P 500 (.SPX) , opens new tab and the Nasdaq (.IXIC) , opens new tab reached new heights recently as investors believed that the economic fallout from tariffs might not be as dire as once feared.
Trump has threatened to slap 30% tariffs on imports from Mexico and the EU, and sent letters to other trading partners, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% to 50%.
Investors were expecting some progress in trade talks after U.S. Commerce Secretary Howard Lutnick on Sunday expressed confidence over striking a trade deal with the European Union.
However, EU diplomats said the 27-member bloc is exploring a broader set of possible counter-measures against the United States, as hopes for a breakthrough deal with Washington dwindled.
On the economic data front, investors will keep a close eye on jobless claims figures and the July business activity report, expected on Thursday.
They will also closely analyze Federal Reserve Chair Jerome Powell’s remarks on Tuesday for any clues on the central bank’s next move, especially after last week’s mixed inflation signals.
Traders have largely ruled out a July rate cut, and are now pegging the odds at about 56% for a September reduction, according to CME Group’s FedWatch tool.
Advancing issues outnumbered decliners by a 3.02-to-1 ratio on the NYSE, and by a 2.58-to-1 ratio on the Nasdaq.
The S&P 500 posted 15 new 52-week highs and 5 new lows, while the Nasdaq Composite recorded 73 new highs and 34 new lows.
Reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Editing by Maju Samuel and Shinjini Ganguli
Our Standards: The Thomson Reuters Trust Principles. , opens new tab