US Stocks Surge to Record Highs as Investors Cheer Corporate Earnings and Strong Economic Data

The S&P 500 closed at a record high of 6,297.36 after a 0.54% gain, while the Nasdaq Composite rose 0.74% to a record high of 20,884.27. The Dow Jones Industrial Average gained 0.52% to settle at 44,484.49. Earnings reports from companies such as PepsiCo and United Airlines exceeded expectations, and economic data showed ongoing strength in the US economy.

The S&P 500 closed at a record high of 6,297.36 after a 0.54% gain, while the Nasdaq Composite rose 0.74% to a record high of 20,884.27. The Dow Jones Industrial Average gained 0.52% to settle at 44,484.49. These gains were driven by strong earnings reports from companies such as PepsiCo and United Airlines, as well as positive economic data indicating ongoing strength in the US economy.

PepsiCo (PEP) delivered revenue and profit that topped Wall Street’s expectations, jumping 7.5% on the news. The company also stood by its financial forecasts, projecting lower full-year profit due to increased costs from tariffs and a pullback in consumer spending. United Airlines (UAL) reported a stronger profit for the latest quarter than analysts expected, with its stock rising 3.1%. The airline also noted an acceleration in demand beginning in early July and expects less uncertainty about the economy in the second half of the year.

The market's performance highlights the ongoing tension between positive developments and broader economic concerns. Despite the tame inflation report, the market remained cautious, with investors taking profits after the recent good run. The Nasdaq's gains were primarily driven by Nvidia (NVDA), which rose 1% after unveiling plans to resume sales of its H20 AI chip to China. This development is seen as a significant breakthrough in US-China trade relations.

In the bond market, Treasury yields were mixed following several better-than-expected reports on the economy. Shoppers upped their spending at U.S. retailers by more than expected, and fewer U.S. workers applied for unemployment benefits last week. These solid data points could keep the Federal Reserve on pause when it comes to interest rates, as the Fed has been keeping rates steady this year.

The market's performance highlights the ongoing tension between positive developments and broader economic concerns. Despite the tame inflation report, the market remained cautious, with investors taking profits after the recent good run. The Nasdaq's gains were primarily driven by Nvidia, which rose 1% after unveiling plans to resume sales of its H20 AI chip to China. This development is seen as a significant breakthrough in US-China trade relations.

References:
[1] Kulr8. (July 25, 2025). Wall Street hangs near its record as Pepsico and United Airlines offset drops for health. Retrieved from https://www.kulr8.com/news/national/wall-street-hangs-near-its-record-as-pepsico-and-united-airlines-offset-drops-for-health/article_4ddcdc95-cdf7-5220-8f51-0ca2b2927478.html
[2] AInvest. (July 15, 2025). Nasdaq composite index rises 0.26% from Monday’s close. Retrieved from https://www.ainvest.com/news/nasdaq-composite-index-rises-0-26-china-trade-progress-2507/
[3] Reuters. (July 15, 2025). Nasdaq sp 500 futures gain ground with earnings inflation spotlight. Retrieved from https://www.reuters.com/business/nasdaq-sp-500-futures-gain-ground-with-earnings-inflation-spotlight-2025-07-15/