S&P 500 Stays Unchanged Amid Consumer Sentiment Boost, Invesco Soars on QQQ Trust Reclassification

The S&P 500 finished essentially unchanged on Friday, with consumer sentiment data suggesting waning tariff worries. Invesco shares soared after petitioning shareholders to reclassify the Invesco QQQ Trust as an open-ended fund. Netflix posted better-than-expected quarterly profits but predicted a lower operating margin in the second half of the year, causing its shares to drop.

The S&P 500 finished essentially unchanged on Friday, with consumer sentiment data suggesting waning tariff worries. The University of Michigan's July inflation report indicated a significant drop in long-term inflation expectations, from 4% to 3.6%, which may influence Federal Reserve policy [2]. Invesco shares soared after petitioning shareholders to reclassify the Invesco QQQ Trust as an open-ended fund, reducing its expense ratio by 2 basis points [3]. Netflix posted better-than-expected quarterly profits but predicted a lower operating margin in the second half of the year, causing its shares to drop [4].

The S&P 500 (.SPX) and the Nasdaq Composite (.IXIC) both finished at record highs on Thursday, driven by strong economic data and earnings reports that showed American consumers remained willing to spend. The S&P 500 gained 0.54%, and the Nasdaq Composite rose 0.74%, while the Dow Jones Industrial Average (.DJI) ended up, rising 0.52% [1]. The technology sector was particularly strong, with TSMC, the world's main producer of advanced AI chips, posting a record quarterly profit, indicating strong demand for AI chips [1].

Consumer sentiment data from the University of Michigan indicated an improvement in consumer confidence, with long-term inflation expectations falling to 3.6%, down from 4.0% in June. This data suggests that consumers are less worried about inflation, which may lead to increased spending and support economic growth [2].

Invesco Capital Management (IVZ) is seeking to reclassify the Invesco QQQ Trust (QQQ) from a "unit investment trust" to a "management company" under the Investment Company Act of 1940. The proposed changes would see a decrease in QQQ's expense ratio by 2 basis points, reducing it from 20 to 18 basis points. The restructuring plan requires approval from QQQ's beneficial owners through a proxy vote [3].

Netflix (NFLX) reported better-than-expected second-quarter earnings after the closing bell on Thursday. The streaming service exceeded Wall Street expectations, posting earnings per share of $7.08 and revenue of $11.07 billion. However, the company predicted a lower operating margin in the second half of the year, causing its shares to drop. Netflix has been steadily increasing its operating guidance over the past few years, which is a positive for the stock [4].

References:
[1] https://www.reuters.com/business/sp-500-nasdaq-end-fresh-record-highs-data-earnings-point-consumer-strength-2025-07-17/
[2] https://www.xtb.com/en/market-analysis/breaking-uoms-consumer-sentiment-improves-amid-lower-inflation-expectation
[3] https://www.gurufocus.com/news/2987356/invesco-files-preliminary-proxy-statement-to-reclassify-invesco-qqq-trust-series-1-ivz-stock-news
[4] https://www.cnbc.com/2025/07/17/netflix-nflx-earnings-q2-2025.html