US Stocks Surge to New Records Amid Positive Earnings and Economic Data

U.S. stocks saw a positive week with the S&P 500 and Nasdaq Composite notching record highs. Solid Q2 earnings and favorable economic data offset concerns about tariffs and Federal Reserve independence. Key inflation readings came in softer than expected, and June retail sales blew past estimates. Big banks, JPMorgan and Bank of America, and streaming giant Netflix delivered beat-and-raise quarters. The independence of the central bank and tariffs were also key themes this week. For the week, the S&P 500 climbed 0.6%, while the Nasdaq Composite gained 1.5%. The blue-chip Dow slipped 0.1%.

U.S. stocks had a positive week, with the S&P 500 and Nasdaq Composite reaching new highs. The S&P 500 (.SPX) gained 0.6% to 6,299.02 points, while the Nasdaq Composite (.IXIC) rose 1.5% to 20,887.74 points. The Dow Jones Industrial Average (.DJI) slipped 0.1% to 44,502.42 points [1].

The week was buoyed by strong second-quarter earnings and favorable economic data. Chip stocks surged after Taiwan Semiconductor Manufacturing Company (TSMC) reported a record quarterly profit, driven by robust demand for artificial intelligence chips. TSMC's performance lifted shares of other semiconductor companies such as Marvell (MRVL.O) and Nvidia (NVDA.O) [1].

PepsiCo (PEP.O) saw its shares jump after forecasting upbeat results, fueled by demand for energy drinks and healthier sodas. United Airlines (UAL.O) also gained, projecting stronger demand since early July, while rivals Delta (DAL.N) and American Airlines (AAL.O) climbed as well [1].

June retail sales rose 0.6%, significantly above expectations, indicating consumer spending remains resilient despite inflation and tariffs. This data boosted investor confidence and eased recession worries [2].

The Federal Reserve's stance on interest rate cuts remained a key theme. Fed Governor Adriana Kugler reiterated that rate cuts are on hold for now, as Trump's tariffs begin to push up consumer prices. Traders pegged the odds of a September rate cut at just over 54%, with a July move nearly ruled out [1].

Big banks JPMorgan and Bank of America, along with streaming giant Netflix (NFLX), delivered beat-and-raise quarters, further supporting market sentiment. Netflix's shares rose 0.8% ahead of its Q2 earnings report, with investors watching for ad-tier growth and password-sharing crackdowns [2].

The week ended with a cautious optimism, as the market remains sensitive to political noise from President Trump and the Federal Reserve's independence. The market is currently pricing in stability at the next Fed meeting in two weeks [2].

References:
[1] Reuters. (2025, July 17). Chip stocks jump after TSMC's record quarterly profit. Retrieved from https://www.reuters.com/business/sp-500-nasdaq-end-record-highs-data-earnings-point-consumer-strength-2025-07-17/
[2] Economic Times. (2025, July 17). US stock market today rallied as Dow, S&P 500, and Nasdaq hit new highs. Retrieved from 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