Nasdaq Reaches 11th Record High of the Year Amid Mixed Market Performance

The Nasdaq closed at its 11th record high for the year, while stocks mostly closed lower. Fed governor Christopher Waller expressed interest in the central bank's top job if offered. Trading activity surged, boosting brokerage profits in Q1.

The Nasdaq 100 closed at its 11th record high for the year on Thursday, July 1, 2025, as the broader market experienced mixed results. Despite the index reaching new highs, stocks mostly closed lower, reflecting the ongoing uncertainty surrounding trade policies and economic data [1].

The Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.74%, adding to its string of record highs this year. The index was bolstered by strong earnings reports from several major companies, including PepsiCo (PEP) and Snap-on (SNA), which reported better-than-expected quarterly results [1].

However, the broader market was not as robust. The S&P 500 Index ($SPX) (SPY) and the Dow Jones Industrials Index ($DOWI) (DIA) both closed up, but their gains were modest compared to the Nasdaq 100. The S&P 500 closed up +0.54%, while the Dow Jones closed up +0.52% [1].

The mixed market performance can be attributed to several factors. On the positive side, the US economy showed signs of resilience with a decline in weekly jobless claims to a 3-month low and a stronger-than-expected retail sales report. Additionally, the Philadelphia Fed index rose to a 5-month high, indicating a positive outlook for manufacturing [1].

On the negative side, health insurers faced a significant setback after Elevance Health (ELV) cut its earnings outlook for the year. The company's stock plunged by -12% as a result. Furthermore, hawkish comments from Fed Governor Adriana Kugler suggested that the Fed might keep interest rates on hold for an extended period, which was bearish for stocks [1].

Trading activity surged, leading to increased profits for brokerage firms during the first quarter. The rise in trading volumes boosted earnings for companies like Charles Schwab Corp/The (SCHW) and Euronet Worldwide Inc (EEFT), which reported strong financial results [1].

Fed Governor Christopher Waller expressed interest in the central bank's top job if offered. This development could have implications for monetary policy, as Waller is known for his dovish stance. His interest in the position could influence the Fed's approach to interest rates and economic stimulus [1].

The markets will continue to focus on trade policies and economic data releases in the coming days. On Friday, housing starts and building permits data are expected to be released, providing further insight into the US housing market. Additionally, the University of Michigan's consumer sentiment index is expected to climb, indicating potential improvements in consumer confidence [1].

In summary, the Nasdaq 100 closed at its 11th record high for the year, while the broader market experienced mixed results. The mixed performance can be attributed to a combination of positive economic data and negative news from health insurers and Fed comments. Trading activity surged, boosting brokerage profits, and Fed Governor Christopher Waller expressed interest in the central bank's top job.

References:
[1] https://www.nasdaq.com/articles/sp-500-and-nasdaq-100-rally-record-highs-resilient-us-economy