US Markets See-Saw After New Record Highs

The S&P 500 and Nasdaq hit new record highs on Friday, while the Dow was weighed down by weakness in American Express and 3M. Despite this, both the S&P 500 and Nasdaq saw gains, with the S&P 500 up 0.3% and the Nasdaq up 0.4%. The Dow, however, was down 0.2%.

The S&P 500 and Nasdaq Composite hit new record highs on Friday, July 2, 2025, while the Dow Jones Industrial Average (DJIA) was dragged down by weakness in American Express and 3M. Despite this, the S&P 500 gained 0.3% to close at 6,284.24, while the Nasdaq Composite rose 0.4% to 20,782.58. The DJIA, however, fell 0.2% to 44,353.40 [1].

The S&P 500 and Nasdaq were buoyed by strong earnings from major tech companies and a largely in-line inflation report. Nvidia, an AI-chip leader, surged 5% after announcing plans to resume sales of its H20 AI chip to China. Other chipmakers, such as Advanced Micro Devices and Super Micro Computer, also advanced. The Philadelphia Semiconductor Index was up 2.1% [1].

The second-quarter earnings season kicked off with mixed results. Big banks like JPMorgan Chase and Wells Fargo saw their shares move in opposite directions despite reporting earnings. JPMorgan Chase slipped 1% despite boosting its 2025 net interest income outlook, while Wells Fargo shares tumbled 5% despite a quarterly profit climb. BlackRock set a new record with $12.53 trillion in assets under management, but its shares dropped 6.2% [1].

The KBW Bank index hit a two-week low and was last down 1.1%. Citigroup rose 1% after its profit jumped in the second quarter due to traders' windfall from turbulent markets. Despite President Donald Trump's renewed tariff threats aimed at Russia, markets largely brushed off the rhetoric, focusing instead on a breakthrough from negotiations with U.S. trade partners [1].

Fed Governor Christopher Waller made headlines with his strongest call yet for a July rate cut. Speaking in New York, Waller argued the central bank should lower its policy rate by 125–150 basis points, bringing it down to 3%. He said any inflation stemming from Trump’s tariffs would likely be temporary and shouldn’t prevent action [2].

The S&P 500 posted 19 new 52-week highs and two new lows, while the Nasdaq Composite recorded 53 new highs and 27 new lows. Declining issues outnumbered advancers by a 1.09-to-1 ratio on the NYSE and by a 1.08-to-1 ratio on the Nasdaq [1].

References:
[1] https://www.marketscreener.com/quote/index/S-P-500-4985/news/S-P-500-Nasdaq-touch-record-highs-as-Nvidia-jumps-data-bank-results-in-focus-50510366/
[2] https://m.economictimes.com/news/international/us/us-stock-market-today-wall-street-pauses-near-record-highs-sp-500-nasdaq-dip-netflix-plunges-american-express-falters-as-inflation-outlook-cools/articleshow/122768384.cms