The S&P 500 marked its sixth record high since June 27. The Nasdaq delivered six top performances over the past seven sessions. Chip stocks jumped after TSMC posted record quarterly profits. Consumer-focused shares of PepsiCo and United Airlines advanced on upbeat forecasts. Indices gained: the Dow Jones up 0.52%, the S&P 500 up 0.54%, the Nasdaq up 0.74%.
Markets closed with strong gains
Major US equity benchmarks wrapped up Thursday with impressive results, setting fresh records. Leading economic indicators and recent corporate earnings reinforced confidence that American consumers remain active spenders, despite external risks.
Tech sector drives Wall Street higher
The Nasdaq Composite rose 153.78 points, gaining 0.74% to reach 20,884.27, marking its sixth advance in seven trading sessions. The broad-market S&P 500 also posted solid momentum, climbing 33.66 points, or 0.54%, to close at 6,297.36. The Dow Jones Industrial Average added 229.71 points, or 0.52%, finishing at 44,484.49.
Stock rally follows spring turbulence
After tumbling in spring following Donald Trump's Liberation Day tariff announcement, markets have not only rebounded but entered a sustained uptrend. This week is seen as a test of that strength amid key macroeconomic data releases and the start of earnings season.
Fed adopts wait-and-see stance
Investors are closely watching how trade policy influences the economy. The Federal Reserve has stated it won't cut rates unless inflation shows a clear uptick. On Thursday, Fed Governor Adriana Kugler reaffirmed this stance, emphasizing the central bank's caution given the potential impact of tariffs on consumer prices.
Market in holding pattern as interest rates in focus
According to CME Group's FedWatch tool, market participants currently assign roughly a 54% chance of a Fed rate cut in September. A July move is largely ruled out, underscoring the cautious posture of both investors and the central bank.
Consumer sector defies expectations with resilience
Strong retail sales data was bolstered by upbeat guidance from top consumer-driven companies. PepsiCo shares surged 7.5% after the company unveiled optimistic forecasts. The beverage giant is leaning into growing demand for energy drinks and healthier soda alternatives, helping offset concerns over a potential annual earnings decline.
Airlines reclaim altitude
United Airlines gained 3.1% as upbeat projections for early July demand fueled optimism across the aviation sector. The move offered a rare positive signal for an industry grappling with tightened budget spending and ongoing trade tensions. Shares of Delta and American Airlines also advanced solidly — each climbing more than 1.4%.
Chips and AI propel tech sector higher
The technology sector continued to gather steam, particularly in the semiconductor space. Taiwanese chipmaker TSMC, the world's largest producer of processors for AI systems, reported record quarterly profits. That sparked renewed investor appetite for semiconductor stocks.
TSMC's US-listed shares added 3.4 percent. Marvell and Nvidia followed suit, rising 1.6 percent and 1 percent, respectively. Ameriprise analyst Anthony Saglimbene noted that TSMC's strong performance sends a positive signal for the broader tech sector, especially amid surging interest in AI solutions.
Industrial and tech stocks break records
Thursday's session ended on a high note as indices tracking the tech and industrial sectors notched new all-time highs. However, the day's biggest winner was the financial sector, which climbed 0.9%, notching the strongest gain among the nine sectors finishing the session in the green.
Netflix surprises: Squid Game delivers windfall profits
Netflix shares climbed nearly 2%, even before the company released its quarterly report. The final episodes of the global hit Squid Game helped the streaming giant outperform analysts' forecasts. Currency tailwinds from a weakening dollar further boosted Netflix's standing in international markets.
Asia picks up momentum after US rally
Friday's trading in Asia carried a positive tone, as investors, buoyed by strong US economic data and robust corporate earnings, continued buying despite concerns over trade restrictions. The MSCI index tracking Asia-Pacific equities excluding Japan rose 0.7%, hitting its highest level in nearly three years and ending the week up 1.5%.
Japan under pressure: Nikkei loses ground
Japan's Nikkei index slipped 0.2%. The yen also weakened, falling 0.1% against the dollar and extending a two-week decline. Investors are nervously eyeing upcoming parliamentary elections: polls suggest that the coalition led by Prime Minister Shigeru Ishiba may lose control of the upper house.
Europe and Wall Street poised to rise
European equity markets appear ready for a strong open, with EUROSTOXX 50 futures up 0.4%. US futures also edged higher, gaining 0.2% in early trading.
Slowing, but no relief
Fresh economic data released on Friday showed a slight slowdown in Japan's core inflation rate for June, helped by a temporary dip in utility tariffs. Still, inflation remained above the Bank of Japan's 2% target — a persistent source of unease for consumers.
Soaring prices fuel discontent
Rising household expenses, including a sharp spike in the cost of staples like rice, are fueling pressure on the government. The discontent is particularly visible in the falling approval ratings of Prime Minister Shigeru Ishiba, whose popularity has been dented by economic woes.
China and Hong Kong climb
Meanwhile, Chinese markets posted a moderately positive session. The index of China's blue-chip companies rose 0.4%. Hong Kong's Hang Seng climbed 0.8% amid improving regional sentiment.
