S&P 500 and Nasdaq Scale New Highs Ahead of Big Tech Earnings

Barry Adams
21 Jul, 2025
New York City

Wall Street indexes advanced on Monday and extended four-week-long gains amid earnings optimism.

The S&P 500 index edged up 0.6%, and the tech-focused Nasdaq Composite advanced 0.8%, ahead of a flood of tech earnings this week. 

The upcoming week will focus on earnings, with approximately 150 U.S. companies scheduled to release their results.

Investors are awaiting results from Alphabet, IBM, Tesla, Intel, AT&T, Verizon, Lockheed Martin, Raytheon, Texas Instruments, ServiceNow, and Coca-Cola Company.

Last week, the two-month-long market rally got an additional boost following resilient consumer spending update, weakening jobless claims data, and strong earnings from big banks and airlines. 

This week on the economic front, durable goods orders are on tap, and new and existing home sales are likely to show modest increases in the last month.

For now, investors are willing to increase exposure to riskier assets because the sharp increase in U.S. import tax has not been visible in inflation reports. 

However, inflation is likely to pick up in the months ahead if businesses pass on higher tariffs to consumers.

The effective tariff rate on U.S. imports has jumped from 2.4% a year ago to close to 9% in June, and U.S. Customs collected $27 billion in tariffs compared to $7.9 billion a year ago.

In 2025, total tariff collection is likely to cross $300 billion and exceed $450 billion in 2026, sharply higher than $77 billion in 2024. 

And tariff levels are still rising, potentially reaching close to 20%, meaning more pain for businesses and consumers.

 

U.S. Indexes and Stocks 

The S&P 500 index inched up 0.6% to 6,331.45, and the tech-heavy Nasdaq Composite added 0.8% to 6,331.45.

Domino's Pizza Inc. decreased 0.6% to $465.03, despite the company delivering better-than-expected sales growth in the second quarter. 

Total revenues increased 4.3% to $1.14 billion from $1.09 billion, net income decreased 7.7% to $131 million from $142 million, and diluted earnings per share declined 5.5% to $3.81 from $4.03 a year ago. 

Global retail sales rose 5.6%, driven by a 5.1% increase in U.S. stores and 6.0% in international sales.

U.S. same-store sales advanced 3.4%, and international same-store sales rose 2.4%, as U.S. consumers switched to value offerings and avoided expensive dining-out options because of growing macroeconomic uncertainties. 

The company announced quarterly cash dividend of $1.74 per share to shareholders on record on September 15 to be paid on September 30.