Companies Tariffs on Japanese autos cut to 15% from 27.5%

Thermo Fisher surges after beating Street estimates

Texas Instruments slumps as tariff uncertainty hits demand

S&P 500 +0.59%, Nasdaq +0.39%, Dow +0.97%

July 23 (Reuters) – The S&P 500 rose to a record high on Wednesday, lifted by Nvidia and GE Vernova, as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement U.S. President Donald Trump struck with Japan.

The White House’s deal with the European Union would include a broad tariff of 15% on EU goods imported into the U.S., two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan

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The S&P 500 rose to an intraday record high, and the benchmark has now climbed almost 8% in 2025.

“The key thing is the markets have confidence that the White House is going to continue to work through these trade deals,” said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report.

Shares of GE Vernova (GEV.N) , opens new tab surged 13% to an all-time high after the power equipment maker raised its revenue and free cash flow forecasts and beat Wall Street estimates for second-quarter profit. GE Vernova has gained over 80% so far in 2025, with power consumption on track to hit due to growing demand from AI and cryptocurrency data centers.

Tesla (TSLA.O) , opens new tab dipped 0.3% ahead of its quarterly report due after the closing bell. Investors will focus on the electric vehicle maker’s analyst conference call as they brace for a steep drop in revenue related to mounting competition, a lack of new car models and a consumer backlash against CEO Elon Musk

“What you will hear is an awful lot of discussion about the future and a broad acknowledgement that this was a terrible quarter,” said Michael Green, chief strategist at Simplify Asset Management in Philadelphia.

Alphabet (GOOGL.O) , opens new tab dipped 0.7%, with the Google parent also set to report results after the close of trading.

A Wall Street plate is seen on a street vendor stall outside the New York Stock Exchange (NYSE) in New York City, U.S., July 11, 2025. REUTERS/Jeenah Moon/File photo Purchase Licensing Rights , opens new tab

The S&P 500 was up 0.59% at 6,347.10 points. The Nasdaq gained 0.39% to 20,973.24 points, while the Dow Jones Industrial Average was up 0.97% at 44,933.80 points, approaching its December 4 record high.

Wall Street’s “fear gauge”, the CBOE Volatility Index (.VIX) , opens new tab , dipped to its lowest level in over five months.

Analysts on average expect S&P 500 companies to report a 7.5% increase in earnings for the second quarter, according to LSEG I/B/E/S. Microsoft (MSFT.O) , opens new tab , Nvidia and other technology heavyweights that have seen their valuations soar due to their leadership in AI are expected to drive much of that quarterly earnings growth.

In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday’s weekly jobless claims numbers and S&P Global’s flash PMI data to gauge economic health in the wake of tariff uncertainties.

Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool.

Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 1.7-to-one ratio.

The S&P 500 posted 45 new highs and 2 new lows; the Nasdaq recorded 84 new highs and 17 new lows.

Reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru, and by Noel Randewich In San Francisco; Editing by Maju Samuel and David Gregorio

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

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