Vincent Napolitano, a trader, is seen at work on the floor of the New York Stock Exchange. (Photo by Richard Drew/AP)
Wall Street opened the week with a fresh wave of optimism as U.S. stock indexes pushed further into record territory. Investors kept a close eye on earnings reports, and Verizon set the tone with a strong start.
The S&P 500 crept up by 0.1%, reaching a new high after breaking its last record just days earlier. The Nasdaq followed suit, rising 0.4% to hit another record level. The Dow Jones Industrial Average, however, slipped by a modest 19 points.
Verizon led the market charge, climbing 4% after posting quarterly earnings that beat Wall Street forecasts. The telecom giant also brought in higher revenue than expected and raised its full-year outlook, a move that energized investors ahead of a packed earnings calendar.
While Verizon impressed, Sarepta Therapeutics dragged on the market. Its shares dropped 5.4% after the FDA asked the company to halt shipments of Elevidys, a gene therapy meant to treat Duchenne muscular dystrophy. The agency flagged safety concerns, continuing a slide in Sarepta’s stock.
Block Inc., the parent company of Square and Cash App, surged 7.6% after news broke that it will be added to the S&P 500 index, replacing Hess following its acquisition by Chevron. Being included in the S&P 500 often leads to increased demand from institutional investors.
Meanwhile, Cleveland-Cliffs saw a sharp jump of 12.4% after reporting a smaller-than-expected quarterly loss. The steel producer shipped a record 4.3 million net tons during the quarter. CEO Lourenco Goncalves credited U.S. tariffs for helping domestic manufacturers, especially auto companies that rely heavily on American steel.
Still, tariffs remain a double-edged sword. While some companies benefit, others like General Motors face rising costs from imported goods. GM and industry giants like Alphabet, Tesla, and Coca-Cola are expected to release their earnings soon, and many are navigating global trade pressures.
Some relief on the tariff front may be in sight. Former President Donald Trump has paused some of his proposed tariff hikes to allow time for trade negotiations. The next major decision point falls on August 1, keeping investors on alert.
Though early, the current earnings season is offering a few positive signals. United Airlines has seen a rise in travel demand, and recent retail sales figures have come in stronger than expected. These trends suggest that American consumers may still have buying power, which could help steady the broader economy.
Bank of America’s strategist Savita Subramanian noted that healthy consumer spending could provide vital support as companies work to maintain profit momentum.
In the end, the S&P 500 rose 8.81 points to 6,305.60, the Dow fell slightly to 44,323.07, and the Nasdaq gained 78.52 to reach 20,974.17.
Bond yields softened as the 10-year Treasury dipped from 4.44% to 4.38%, signaling a cautious investor outlook amid broader economic uncertainty.
Globally, markets in Europe were mixed, and Asia ended mostly higher—except for Japan, where political turmoil overshadowed financial news. After major losses in the parliamentary elections, Prime Minister Shigeru Ishiba pledged to remain in power. Analysts expect increased government spending, despite the already bloated national debt.
