US Stock Markets Close Higher, Dow Jones 30 Industrials up 0.519%

US stock indices close with gains: Dow Jones 30 Industrials up 0.519%, Nasdaq Composite up 0.748%, and S&P500 up 0.537%. European indices also rise, with the CAC-40 up 1.294% and FT-100 up 0.516%. The Nikkei in Tokyo and Hang Seng in Hong Kong see moderate gains, while the S&P/TSX in Toronto rises 0.862%.

The US stock market closed with modest gains on July 2, 2025, with the Dow Jones Industrial Average up 0.519%, the Nasdaq Composite up 0.748%, and the S&P 500 up 0.537%. The positive performance was driven by strong earnings reports and robust consumer data [1].

The European indices also rose, with the CAC-40 up 1.294% and the FT-100 up 0.516%. The Nikkei in Tokyo and the Hang Seng in Hong Kong saw moderate gains, while the S&P/TSX in Toronto rose 0.862%.

Key drivers of the US market's performance included upbeat earnings from companies such as TSMC and PepsiCo, as well as a surprise rebound in retail sales. The Dow Jones added 0.32%, the S&P 500 rose 0.18%, and the Nasdaq Composite climbed 0.4% on Thursday, reflecting investor confidence in the broader economy [1].

Retail sales in June surprised the markets by surging +0.6%, significantly above the consensus estimate of +0.1%. This rebound came after a -0.1% dip in May, indicating that consumer spending remains robust despite concerns about inflation and rising borrowing costs [1].

Additionally, the Department of Labor reported 221,000 initial jobless claims for the week ending July 12, the lowest level in three months. This suggests fewer layoffs and a resilient labor market, further boosting investor sentiment [1].

The market's cautious optimism was tempered by ongoing political tensions, particularly Trump's threats to fire Fed Chair Jerome Powell. While Trump later stated that he is not planning to remove Powell, his criticism of the Fed's resistance to interest rate cuts continues to stir uncertainty [1].

Investors are now closely watching Netflix's earnings report, set to kick off the Big Tech reporting season. The market is also awaiting more retail and earnings data next week, including from Tesla, Johnson & Johnson, and American Express, as well as updates on the Fed's interest rate outlook and tariff policy announcements [1].

References:
[1] https://economictimes.indiatimes.com/news/international/us/us-stock-market-today-rallied-dow-sp-500-nasdaq-hit-new-highs-as-strong-tsmc-pepsico-earnings-and-retail-sales-spark-wall-street-surge/articleshow/122647791.cms