U.S. stock indices close higher across the board; popular tech stocks rise across the board

The three major US stock indexes closed higher, with the Dow Jones Industrial Average up 1.34%, the Nasdaq up 1.95%, and the S&P 500 up 1.47%. Popular tech stocks rose across the board, with Nvidia, Google, Meta, and Broadcom up more than 3%, and Tesla and Microsoft up more than 2%. Precious metals, coking coal, and cryptocurrencies led the gains, with American Gold Company and American Silver Company up more than 8%.

The U.S. stock market rebounded sharply on Monday, July 2, 2025, with all three major indexes closing higher. The benchmark S&P 500 (^GSPC) climbed 1.5%, while the blue-chip Dow Jones Industrial Average (^DJI) rose 1.3%, or nearly 600 points. The tech-heavy Nasdaq Composite (^IXIC) led the gains, rising about 1.9% [1].

The recovery followed a sharp pullback on Wall Street on Friday, which was exacerbated by the July jobs report coming in weaker than expected and previous months' tallies being revised sharply lower. This led to a significant decline in investor sentiment, with all three major indexes posting their worst weekly declines in months [2].

Tech stocks were particularly strong, with Nvidia (NVDA) jumping 3%, and Meta (META) and Microsoft (MSFT) closing at all-time highs. Tesla (TSLA) stock also edged higher after reports emerged that the company had granted CEO Elon Musk 96 million shares worth about $30 billion [1].

The market's rebound was also driven by the Federal Reserve's decision to leave rates unchanged for a fifth consecutive meeting. However, traders are now almost 90% confident that there will be a cut in September, following the weak jobs data [1].

President Trump's implementation of tariffs also played a role in the market's performance. The updated tariffs set to come into full effect this week range from 10% to 41% on a wide range of trading partners, raising concerns about rising costs amid broader inflationary pressures. Trump also announced that he would be "substantially raising" tariffs on India as he presses to stop purchasing Russian oil [1].

Earnings season continues to roll on with a busy week of corporate releases. Over 100 S&P 500 companies are set to report, with spotlights on Palantir (PLTR), Eli Lilly (LLY), and Disney (DIS) [2].

Historical data suggests that earnings releases for these companies have historically influenced short-term performance. For example, PLTR has demonstrated a 100% win rate in the 3-day and 10-day periods following earnings announcements, with a maximum return of 25.03% observed over 59 days. LLY has shown a 75% win rate in the 3-day and 10-day periods, with a peak return of 10.97% over 60 days. In contrast, DIS has exhibited a more mixed pattern, with only a 50% win rate in the 3-day and 10-day periods and a 25% win rate over 30 days, with a maximum return of 6.78% over 59 days. These results highlight the potential for PLTR and LLY to deliver strong short-term returns post-earnings, while DIS requires closer scrutiny for consistency.



Looking ahead, investors will be monitoring comments from several Federal Reserve officials throughout the week for any signals on future policy direction. Additionally, the U.S. ISM Services PMI report on Tuesday is expected to provide further insights into the economy's health [2].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-jumps-500-points-sp-500-nasdaq-have-best-day-since-may-as-wall-street-bounces-back-200023637.html
[2] https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-big-earnings-week-on-tap-after-pullback-4167408