S&P 500 Climbs Toward Record Highs Ahead of Big Tech Earnings
The S&P 500 surged on Monday, trading just shy of record levels as investors geared up for a crucial week of second-quarter earnings, with several major Wall Street firms set to report.
As of 12:57 p.m. ET, the S&P 500 was up 0.6%, the Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average rose 239 points, or 0.5%.
Stocks had paused near all-time highs on Friday following reports that President Donald Trump was planning to implement 15% to 20% tariffs on European Union imports, with those tariffs expected to go into effect on August 1.
Tech Giants Tesla and Alphabet in Earnings Spotlight
This week’s earnings calendar is led by tech heavyweights Alphabet (NASDAQ: GOOGL) and Tesla (NASDAQ: TSLA), both of which are set to report on Wednesday. These two companies, part of the “Magnificent Seven” mega-cap tech group, are expected to offer significant cues for broader market sentiment.
Last week, upbeat earnings from major banks kept investor confidence elevated, even though some institutions issued warnings about economic risks tied to Trump’s trade policies. Going forward, attention will turn to how these tariffs might affect company outlooks and operations for the remainder of the year.
Among Monday’s key earnings:
- Verizon Communications (NYSE: VZ) raised the lower end of its full-year earnings guidance, crediting solid demand for its premium wireless plans.
- Domino’s Pizza (NASDAQ: DPZ) posted Q2 earnings below forecasts, but strong sales still beat expectations, lifting shares in the world’s largest pizza chain.
Oil Prices Dip on Trade and Sanctions Concerns
Oil prices moved lower amid growing fears over reduced global demand driven by trade tensions, and the potential effects of new European sanctions targeting Russian oil flows.
- Brent crude slipped 0.3% to $69.11 per barrel
- WTI crude dipped 0.2% to $65.88 per barrel (as of 11:13 a.m. ET)
Last week, the European Union unveiled new sanctions against Russia related to the war in Ukraine, including restrictions on India’s Nayara Energy, which processes and exports products derived from Russian crude.
Analysts at ING noted the muted market response, suggesting that traders are skeptical about the effectiveness of the measures. However, they pointed to one component that could prove impactful: an EU ban on importing refined oil products made from Russian crude in third countries, a move that could disrupt global energy flows.
