A display board shows stock market figures at the New York Stock Exchange on Friday, Aug. 1, 2025, in New York. (AP Photo/Yuki Iwamura)
Wall Street wrapped up the week on a high note, logging its third gain in the past four weeks and pushing major indexes closer to record levels. The S&P 500 rose 0.8% Friday, just a fraction below the peak it reached last week. The Dow Jones Industrial Average gained 0.5%, while the tech-heavy Nasdaq climbed 1%, building on the record it set a day earlier.
The rally was fueled by upbeat earnings from big names like Expedia and Gilead Sciences, both of which beat analysts’ expectations and raised their outlooks. Gilead jumped 8%, marking one of the day’s biggest gains, while Expedia rose nearly 4%.
Tech and Financials Lead the Charge
Technology stocks once again carried much of the market’s momentum. Nvidia rose 1% and Apple surged 4%, contributing heavily to the Nasdaq’s strength. Financial stocks also played a role, with Bank of America advancing 2.6% and Mastercard up 2.5%.
These results come as most S&P 500 companies have wrapped up second-quarter earnings, showing generally strong results despite concerns over tariffs. Some companies have cautioned that ongoing trade tensions could weigh on future profits.
Not All Sectors Shared the Gains
While tech and finance soared, the entertainment sector stumbled. Paramount Skydance fell 10.5% a day after finalizing its $8 billion merger with Paramount. Warner Bros. Discovery also slipped 6.8%.
Trade and Fed Policy in Focus
Investors kept a close eye on developments in the U.S. trade policy. President Donald Trump imposed higher import taxes on multiple countries this week, raising uncertainty over the economic outlook. These trade moves have been a key factor in the Federal Reserve’s decision to keep interest rates unchanged.
Trump has been pressing the Fed to cut rates and recently nominated Stephen Miran, a close economic adviser, to the Fed’s board of governors — a move likely to strengthen his influence over rate decisions.
Currently, Wall Street expects the Fed to lower rates by a quarter-point at its September meeting, following signs of slowing job growth and rising inflation.
Treasury Yields Edge Up
In the bond market, yields rose slightly. The 10-year Treasury yield increased to 4.29%, while the two-year yield, closely tied to Fed expectations, climbed to 3.76%. Lower rates could help boost the economy and markets, but might also reignite inflation concerns.
Global Markets Mixed
Asian markets ended mostly lower, except in Tokyo, where the Nikkei jumped 1.9% after a breakthrough in tariff talks with the U.S. European markets delivered mixed results.
