Catenaa, Monday, July 21, 2025- The S&P 500 and tech-heavy Nasdaq touched all-time highs on Monday, as investors hoped for trade breakthroughs and geared up for a week of tech earnings that could set the tone for US stocks.
The S&P 500 gained 18.34 points, or 0.29%, to 6,315.13 and the Nasdaq Composite gained 110.40 points, or 0.53%, to 21,006.05.
Investors were hoping for some progress in trade talks after US Commerce Secretary Howard Lutnick on Sunday expressed confidence over striking a trade deal with the European Union.
However, EU diplomats said the 27-member bloc is exploring a broader set of possible counter-measures against the United States, as hopes for a breakthrough deal with Washington dwindled.
Trump has threatened to slap 30% tariffs on imports from Mexico and the EU, keeping markets on edge.
The President has also sent letters to other trading partners, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% to 50%.
All eyes are on stocks such as Alphabet and Tesla, whose results this week will kick off the “Magnificent Seven” earnings parade, and could set the tone for Wall Street.
Shares of Tesla and Alphabet were up 1.7% and 0.5%, respectively.
On Monday, Verizon gained 2.2% after boosting its annual profit forecast. The stock also drove the communications sector, which emerged as the top gainer among other sectors.
Meanwhile, shares of Domino’s Pizza rose 2% after the world’s largest pizza chain surpassed analysts’ expectations for second-quarter U.S. same-store sales.
The week is light on the economic data front, with only notable indicators being weekly jobless claims figures and the July business activity report expected on Thursday.
Investors will closely analyze Federal Reserve Chair Jerome Powell’s remarks on Tuesday for any clues on the central bank’s next move, especially after last week’s mixed inflation signals.
Traders have largely ruled out a July rate cut, and are now pegging the odds at about 60% for a September reduction, according to CME Group’s FedWatch tool.
