U.S. stock markets surged on Monday, with the S&P 500 and Nasdaq Composite reaching record highs as investors welcomed a wave of strong corporate earnings and looked ahead to key reports from major tech firms later this week.
By early afternoon, the Dow Jones Industrial Average had gained 245.19 points (0.55%) to reach 44,587.38. The S&P 500 climbed 38.17 points (0.61%) to 6,334.96, while the Nasdaq advanced 158.34 points (0.76%) to 21,053.99—both indexes marking fresh all-time highs. Meanwhile, the 10-year U.S. Treasury yield dipped to 4.356%.
Strong Start to Earnings Season
Earnings reports have been overwhelmingly positive so far, with more than 85% of the 62 S&P 500 companies that have reported beating expectations, according to FactSet. Analysts say this trend could continue to push the market higher. Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, projected the S&P 500 could reach 7,200 by mid-2026.
Among the early highlights:
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Verizon raised its annual outlook after posting better-than-expected second-quarter results. Shares rose 5.06%.
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Domino’s Pizza beat same-store sales expectations for the first time in five quarters, though earnings per share fell short. Shares dropped 1.89%.
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Cleveland-Cliffs posted a narrower-than-expected loss and saw record steel shipments of 4.3 million net tons. The company cited Trump-era steel tariffs and support for the industry as key factors. Shares jumped 14.87%.
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Block Inc., which will be added to the S&P 500 later this week, saw shares rally 7.83%.
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Microsoft reported a cyberattack targeting its server software and issued security updates. Shares inched up.
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Alaska Airlines resumed operations after grounding its fleet due to a software issue. Shares declined slightly.
Later this week, all eyes will be on Alphabet and Tesla, two members of the so-called “Magnificent Seven” group of tech giants, which are scheduled to report earnings midweek. Investors will be looking for signs of continued strength in artificial intelligence spending and potential impacts from Trump’s tariffs and ongoing trade tensions.
Tariff Deadline Approaches
U.S. Commerce Secretary Howard Lutnick reinforced that August 1 remains the “hard deadline” for countries to comply with new U.S. tariffs, though he added that dialogue could continue beyond that date. Reports from Bloomberg and the Financial Times indicate that the European Union is preparing retaliatory measures in case negotiations fail.
President Trump has proposed a 15–20% minimum tariff on all EU imports, with few exceptions, and previously floated a 30% tariff to take effect on August 1. The developments have contributed to trade uncertainty, but have so far not shaken investor confidence.
Economic Data and Fed Controversy
Markets also brushed off a larger-than-expected decline in June’s leading economic indicators, which fell 0.3% to 98.8, compared to the 0.2% decline forecasted by economists surveyed by The Wall Street Journal. These indicators are often seen as early signals of changes in the business cycle.
Meanwhile, a political controversy surrounding Federal Reserve Chair Jerome Powell continued to simmer. President Trump denied reports from The Wall Street Journal claiming Treasury Secretary Scott Bessent convinced him not to fire Powell. Trump insisted he made his own decision based on what is best for markets.
Still, Bessent suggested on CNBC that the performance of the Federal Reserve should be critically reviewed. “If this were the FAA and we had this many mistakes, we’d be investigating why,” he said.
Corporate Setbacks and Cryptocurrency Surge
On the downside, Stellantis warned it expects a €2.3 billion net loss in the first half of the year due to tariffs. Adjusted operating profit is projected at just €0.5 billion, well below the €1.9 billion analyst consensus. Still, its shares gained 1.58%.
In cryptocurrency news, exchange Bullish filed for an IPO under the ticker “BLSH,” boasting a trading volume of over $1.25 trillion since launch. The move follows the successful IPO of stablecoin issuer Circle, whose shares have risen more than sevenfold since June.
Trump Media & Technology Group also announced it has acquired $2 billion in Bitcoin and related assets. Bitcoin traded up 0.44% at $117,810.60.
