Meme stocks heat up as S&P sets fresh record, US stocks close strong week.

U.S. stocks closed strong on Friday with the S&P 500 reaching its 14th record close of the year at 6,388.64. Positive trade signals and upbeat corporate earnings contributed to the gains. The week's performance was also driven by the resurgence of meme stocks.

U.S. stocks closed strong on Friday, with the S&P 500 reaching its 14th record close of the year at 6,388.64. Positive trade signals and upbeat corporate earnings contributed to the gains, while the resurgence of meme stocks also played a significant role in the week's performance. The Dow Jones Industrial Average (DJIA) and the tech-heavy Nasdaq Composite (IXIC) also posted notable gains, reflecting the broader market optimism.

The positive earnings reports from major tech companies, particularly those focused on artificial intelligence (AI), were a key driver behind the market's strength. Alphabet Inc. (GOOG), the parent company of Google, reported strong second-quarter earnings, with its AI spending spree being a notable growth catalyst [2]. This positive sentiment was echoed by other AI-linked stocks such as Nvidia Corporation (NVDA), which saw its shares rise alongside Alphabet's.

The S&P 500's record close comes amidst a period of strong market performance. The index has notched its fourth consecutive record close, reflecting the overall bullish sentiment in the market. The week's gains were also supported by the resurgence of meme stocks, which have been a significant source of volatility and excitement in the market.

The performance of the S&P 500 is particularly notable given the backdrop of geopolitical tensions and ongoing trade negotiations. The U.S.-Japan trade pact, which helped fuel market records on Wednesday, continues to provide positive trade signals. Additionally, the potential agreement between the EU and the U.S. on a 15% tariff rate for most imports from Europe, instead of the threatened 30%, is emerging as a potential new baseline for the "reciprocal" tariffs set to kick in on Aug. 1 [2].

The market's performance also coincides with the U.S. House of Representatives' unexpected adjournment until September. Several academic studies suggest that the stock market performs better when Congress is out of session [3]. This trend was evident last week, with the S&P 500 hitting another all-time high the day after the adjournment.

In conclusion, the strong performance of U.S. stocks on Friday reflects a combination of positive trade signals, upbeat corporate earnings, and the resurgence of meme stocks. The S&P 500's 14th record close of the year underscores the market's overall optimism and resilience amidst geopolitical uncertainties.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/NVDA-Q/pressreleases/33665452/here-s-how-nvidia-and-amd-could-help-this-super-semiconductor-etf-turn-500-per-month-into-1-million/
[2] https://finance.yahoo.com/news/live/stock-market-today-sp-500-notches-4th-consecutive-record-as-google-earnings-fuel-ai-hopes-200143030.html
[3] https://www.morningstar.com/news/marketwatch/20250726131/the-house-is-taking-a-summer-break-and-now-the-stock-market-can-get-to-work