U.S. stocks opened the week on a strong note, with the Nasdaq and S&P 500 moving closer to fresh records as Wall Street braces for a wave of Big Tech earnings and growing uncertainty around U.S. trade policy.
The Nasdaq Composite rose 0.7% by midday Monday, while the S&P 500 added 0.6%. The Dow Jones Industrial Average climbed 250 points, or about 0.5%, helped by gains in manufacturing and telecom names.
Investor attention this week is fixed on two major themes: earnings reports from tech giants, and the looming implementation of tariffs under President Trump’s trade agenda. Alphabet (GOOGL) and Tesla (TSLA) are set to report quarterly results on Wednesday, kicking off the “Magnificent Seven” earnings cycle. Analysts say strong numbers could justify the market’s lofty valuations, which have been supercharged by AI-driven optimism.
Meanwhile, geopolitical tensions continue to weigh on sentiment. The EU is reportedly open to a compromise deal in trade talks with the U.S., hoping to avert new tariffs set to begin August 1. However, political resistance within Europe and the White House’s “hard stop” deadline have made a resolution increasingly uncertain.
Despite macro concerns, corporate earnings remain a bright spot. So far, 86% of reporting S&P 500 companies have beaten analyst estimates, according to LSEG data, though expectations had been tempered heading into the season.
Elsewhere:
- Block (XYZ) jumped 8% on news that it will join the S&P 500 this week, replacing Hess following its merger with Chevron.
- Opendoor (OPEN) surged another 114%, extending last week’s meme-fueled rally sparked by bullish investor commentary.
- Trump Media (DJT) gained 5% after announcing it now holds $2 billion in bitcoin and crypto assets—two-thirds of its total portfolio.
- Sarepta Therapeutics (SRPT) fell more than 4% following reports of an FDA-imposed halt on shipments of its top-selling gene therapy, Elevidys.
- Cleveland-Cliffs (CLF) rose over 13% after posting record steel shipments in Q2, bolstered by protective tariffs on foreign steel.
In tech infrastructure, demand for U.S. data centers continues to soar. Analysts at TD Cowen reported the largest leasing pipeline in history, fueled by AI-related expansions from Oracle, Google, and Amazon. Oracle has reportedly signed letters of intent for major data center sites in New Mexico and Missouri to support its work with OpenAI.
Looking ahead, all eyes remain on Alphabet and Tesla’s earnings as investors assess whether AI momentum can continue to drive markets higher—even as global trade tensions and political uncertainty simmer beneath the surface.