US markets wrapped up Monday with mixed results, setting the stage for a high-stakes week of corporate reports led by Big Tech giants. The Dow Jones Industrial Average dipped 0.04% to 44,323.07, while the S&P 500 edged up 0.14% to 6,305.60. The Nasdaq Composite was the standout, climbing 0.38% to 20,974.17.
Sector performance was uneven. Communication services led gains with a 1.9% jump, followed by consumer discretionary and materials. Energy and healthcare stocks lagged, slipping 0.96% and 0.61%, respectively.
US Commerce Secretary Howard Lutnick reiterated an August 1 deadline for new tariffs, and Treasury Secretary Scott Bessent stressed a "quality-over-speed" mindset for trade deals.
"Rarely do you injure yourself falling out of a basement window," says CFRA Research chief strategist Sam Stovall. "With expectations so low for earnings, the end result could end up better than anticipated." To date, 62 S&P 500 companies have reported, with over 85% surpassing forecasts, according to FactSet.
Verizon Communications shares surged nearly 4% after beating Q2 targets, lifting hopes for other carriers and communication-service names. Cleveland-Cliffs also posted robust earnings, further boosting sentiment.
Mega-cap tech stocks largely held their ground. Alphabet led the group with a 2.8% rise ahead of its Wednesday report. Broadcom climbed 1.7%, while Amazon and Meta each gained over 1%. Apple and Microsoft inched forward, and Nvidia and Tesla dipped slightly – Tesla's earnings are due Wednesday as well.
Global markets – from London to the Asia-Pacific region – watched closely, as US results often act as a barometer for worldwide demand. Investors in emerging markets like India and Brazil are eyeing these reports to gauge the health of the global economy.
With Big Tech earnings taking center stage this week, every beat, miss, and forward guide will be under the microscope, shaping the next leg of this market rally.
Reference(s):
cgtn.com
