S&P 500, Nasdaq Hit Record Highs Ahead of Big Tech Earnings and Fed Remarks

The S&P 500 and Nasdaq closed at record highs Monday, driven by gains in Alphabet (NASDAQ:GOOGL) and other major tech stocks ahead of key earnings reports and potential trade developments. Alphabet surged 2.7% ahead of its Wednesday earnings, while Tesla (NASDAQ:TSLA), also reporting the same day, dipped 0.35%. Apple (NASDAQ:AAPL) rose 0.62% and Amazon (NASDAQ:AMZN) climbed 1.43%, further boosting the indexes.

Verizon (NYSE:VZ) jumped over 4% after raising its annual profit forecast. Analysts expect S&P 500 companies to post a 6.7% increase in Q2 earnings, with Big Tech leading the gains, according to LSEG I/B/E/S. U.S. Bank strategist Tom Hainlin noted that earnings so far have met or exceeded expectations, with no signs of weakening corporate profits or consumer demand.

As President Trump’s August 1 tariff deadline nears, the S&P 500 has risen about 8% in 2025, fueled by hopes trade tensions will ease. Trump has warned of tariffs up to 50% on imports from several countries, including Mexico, the EU, and Japan. Commerce Secretary Howard Lutnick remains optimistic about a U.S.-EU deal despite European countermeasures.

The S&P 500 gained 0.14% to close at 6,305.60, the Nasdaq rose 0.38% to 20,974.18, while the Dow dipped 0.04% to 44,323.07. Seven of 11 S&P sectors advanced, led by communication services (+1.9%) and consumer discretionary (+0.6%). Trading volume hit 19.7 billion shares, above the 20-day average.

Investors now await Fed Chair Jerome Powell’s Tuesday speech and Thursday’s jobless claims and business activity data for interest rate clues. A July rate cut is seen as unlikely, but markets price in a better-than-even chance of a cut by September, per CME Group’s (NASDAQ:CME) FedWatch tool.