Equities capped off a strong week with both the S&P 500 and Nasdaq closing at fresh record highs—marking the S&P’s fifth consecutive record close. The Dow joined the rally, finishing slightly higher. A favorable mix of trade optimism, strong earnings, and surging confidence powered investor sentiment.
Weekly Index Performance
| Index | Last Close (Jul 25) | Weekly Change |
| S&P 500 | 6,388.64 | +0.4% |
| Nasdaq Composite | 21,108.32 | +0.2% |
| Dow Jones Industrial Average | 44,901.92 | +0.5% |
Key Drivers of Last Week’s Rally
Record-Breaking Momentum & Trade Optimism
- The S&P recorded its fifth straight weekly record close; Nasdaq and Dow also climbed.
- Traders were buoyed by promising developments in trade talks with Japan, the Philippines, and an anticipated U.S.–EU meeting.
AI and Tech Leadership
- Nvidia rose about 4.5% on the week, and Alphabet surged after strong earnings and increased AI spending.
- Tesla rebounded over 4% following a robotaxi launch and heavy volume from ARK Invest.
Mixed Earnings Highlights
- Deckers jumped 11.3% on strong international sales, while Edwards Lifesciences rose 5.5% across product lines.
- Intel fell over 7% after reporting weaker results and announcing a 15% workforce reduction.
Volatility Falls & Bond Market Caution
- The VIX dropped nearly 9%, reaching lows not seen since February.
- Margin debt surged past $1 trillion, and large upcoming Treasury issuance raised caution among fixed-income investors.
Sector Highlights
Technology & AI: Led broader market gains—Nvidia up ~4.5%, Alphabet strong; Nasdaq rose ~1.3%.
Consumer & Industrials: Deckers, Edwards Lifesciences, and Tesla supported growth sentiment.
Financials, Utilities, & Real Estate: Utilities and real estate lagged; financials saw mixed responses amid evolving tariff and rate expectations.
Global Market Snapshot
MSCI ACWI: +1.3%
MSCI China: +1.7% on softer trade sentiment.
Currency & Commodities: Modest moves. Dollar strengthened; gold and oil steady.
What to Watch This Week
Federal Reserve Policy: Fed decision on July 30—markets expect a pause but stay alert for rate-cut signals.
Trade Talks & Deadlines: U.S.–China negotiations ahead of the August 12 deadline; ongoing discussions with Canada & Mexico.
Earnings Pipeline: Q2 reports from the Magnificent Seven tech giants, plus Charter Communications and HCA Healthcare.
