U.S. stock markets rallied on Monday as investors closely monitored trade developments and anticipated major tech earnings throughout the week. The S&P 500 surged 0.6%, while the Nasdaq Composite experienced a 0.7% jump, both reaching new all-time intraday highs early in the session, fueled by advances in key technology stocks. Notably, Alphabet saw gains of over 2%, with Meta Platforms and Apple both increasing by more than 1%. The Dow Jones Industrial Average also posted a 244-point rise, or 0.6%.
Trade issues remained at the forefront of investor attention as the Biden administration reiterated its stance on tariffs. U.S. Commerce Secretary Howard Lutnick designated Aug. 1 as the “hard deadline” for countries to begin paying tariffs but noted that discussions could continue beyond this date.
Wall Street is coming off a positive week for the S&P 500 and Nasdaq, both of which hit record highs. The S&P 500 concluded the previous week with a 0.6% increase, while the Nasdaq climbed 1.5%. The Dow, however, ended the week slightly lower.
As earnings season kicks off, the outlook appears strong. Over 85% of the 62 S&P 500 companies that reported results so far have surpassed expectations, according to data from FactSet. Bank of America indicates that second-quarter earnings are on track for a 5% year-over-year growth following the first week of results.
Investors are hopeful that the upcoming earnings reports from Alphabet and Tesla, key players known as the “Magnificent Seven,” could further energize the market. FactSet analyst John Butters anticipates these megacaps will drive substantial earnings growth, with a 14% increase expected for the seven companies compared to just 3.4% for the remaining S&P 500 members.
“Rarely do you injure yourself falling out of a basement window,” said Sam Stovall, chief investment strategist at CFRA Research, in a CNBC interview. “With expectations so low for earnings, I believe the actual results will likely exceed anticipations.” This, he argues, bodes well for market performance.
Stovall also provided a broader perspective, noting that historically, markets tend to advance by an average of 10% after recovering from declines of up to 20%. He believes the S&P 500 could target 6,600 before facing another downturn, reflecting a potential upside of nearly 5% from Friday’s close.
The sentiment in the market suggests that much of the negativity has been worked through during recent corrections. Reports indicate that the economy may not be as dire as previously feared, consumer confidence is improving, and inflation metrics remain stable despite tariff concerns. “It’s just a matter of time before these issues are addressed adequately,” Stovall added. “For now, it seems that investors are leaning toward a market that wants to move higher.”
In summary, the combination of positive earnings expectations and focused trade negotiations positions U.S. stock markets for potential growth, making this week a crucial period for investors and analysts alike.
Original Source: https://www.cnbc.com/2025/07/20/stock-market-today-live-updates.html
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Publish Date: 2025-07-21 23:07:00
