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The Dow Jones Industrial Average has risen 140 points to start the trading week, with the S&P 500 and Nasdaq indices at record highs. Investors are digesting global trade negotiations and awaiting big tech earnings, with companies such as Tesla and Alphabet scheduled to release Q2 results. Mega-cap tech stocks are leading the market rally, while trade developments and Federal Reserve Chair Jerome Powell's term continue to influence the market.

The Dow Jones Industrial Average (DJIA) has risen 140 points to start the trading week, with the S&P 500 and Nasdaq indices reaching record highs. This positive start comes as investors digest the latest developments in global trade negotiations and eagerly await the second-quarter earnings reports from major tech companies such as Tesla (TSLA) and Google parent Alphabet (GOOGL). Mega-cap technology stocks continue to drive the market rally, with Alphabet's stock up more than 2% and others like Meta Platforms (META) and Apple (AAPL) advancing by more than 1%.

Trade developments, particularly those related to tariffs, are also influencing market sentiment. U.S. Commerce Secretary Howard Lutnick has set Aug. 1 as a "hard deadline" for countries to start paying tariffs, although he noted that negotiations can continue after this date [1]. Additionally, ongoing political developments surrounding the U.S. Federal Reserve Chair Jerome Powell have contributed to market volatility. President Donald Trump has revived talk of firing Powell, though he described this as "highly unlikely" [2].

The S&P 500 is up 0.5% and the technology-laden Nasdaq Composite index has gained 0.7% to begin the week. Both indices are at all-time intraday highs, reflecting the strong performance of tech stocks and the overall market resilience. The latest earnings season has also started off strongly, with 85% of companies that have reported Q2 results beating Wall Street expectations [1].

Johnson & Johnson (JNJ) led the Dow Jones Industrial Average on July 2, 2025, trading up 4.3% and registering an 11.9% gain year to date. The company's stock performance was driven by better-than-expected second-quarter results and a raised outlook for the second half of the year. Amazon.com, Inc. (AMZN) was the worst performer, trading down 0.8% and showing a 2.4% gain year to date [2].

The SPDR S&P 500 ETF Trust (SPY) has a consensus Moderate Buy rating among 504 Wall Street analysts. The average SPY price target of $684.67 implies 8.49% upside from current levels [1].

References:
[1] https://www.tipranks.com/news/dow-rises-to-start-the-trading-week-with-sp-500-and-nasdaq-at-all-time-highs
[2] https://www.ainvest.com/news/dow-jones-industrial-average-jnj-leads-gains-amzn-falls-2507/