Wall Street records new highs amidst Intel's decline

The S&P 500 and Nasdaq Composite hit record highs on Friday, with the Dow Jones Industrial Average creeping up 0.2%. Financials and Industrials led the rally, while Real Estate trailed behind. Intel Corporation's 8.5% slide after missing Q2 earnings estimates and announcing a 15% workforce reduction overshadowed the market's optimism. Despite mixed corporate results and softer economic signals, traders remain balanced between excitement over new highs and caution over lingering headwinds.

The S&P 500 and Nasdaq Composite closed at record highs on Friday, July 25, buoyed by optimism over potential trade deals and strong corporate earnings. The S&P 500 rose 0.4% to 6,388.64, while the Nasdaq gained 0.24% to 21,108.32. The Dow Jones Industrial Average climbed 0.47% to 44,901.92 [1].

Investors are increasingly confident that a framework trade deal could be reached this weekend, ahead of a planned meeting between European Commission President Ursula von der Leyen and US President Donald Trump in Scotland. Trump said on July 25 that the chances of a deal were "50-50" [1].

Shares of Deckers Outdoor surged 11% after posting better-than-expected quarterly results, driven by strong international demand. Meanwhile, Intel tumbled 8.5% after forecasting steeper quarterly losses and announcing a 15% workforce reduction, dragging on the broader chip sector [1]. Charter Communications plunged 18% following a sharper-than-expected loss in broadband subscribers, hit by intensifying competition from 5G bundles [1].

Nine of the 11 major S&P sectors advanced, led by materials (1.17%) and industrials (0.98%), reflecting broader confidence in economic resilience and global trade momentum. For the week, the S&P 500 climbed 1.5%, the Nasdaq added 1%, and the Dow gained 1.3% [1].

Volume remained light ahead of the Federal Reserve’s (Fed) meeting next week, with 17.7 billion shares traded versus the 20-day average of 18.1 billion. All eyes now turn to the Fed, which is expected to hold rates steady at its policy meeting on July 31. However, traders are pricing in a 60% chance of a rate cut by September, according to CME’s FedWatch tool. Trump reiterated his call for lower rates, expressing confidence Fed Chair Jerome Powell may soon act [1].

Looking ahead, earnings season continues next week, with market heavyweights Microsoft, Apple, Amazon, and Meta Platforms set to report. Analysts expect S&P 500 earnings to rise 7.7% year-over-year in the second quarter, led by gains from the tech sector [1].

References:
[1] https://www.businesstoday.com.my/2025/07/26/sp-500-nasdaq-close-at-record-highs-on-trade-deal-hopes/
[2] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-nudge-higher-in-search-for-more-records-133715212.html
[3] https://www.morningstar.com/news/dow-jones/202507257521/dow-jones-top-energy-headlines-at-4-pm-et-oil-futures-post-back-to-back-weekly-losses-eni
[4] https://www.intc.com/news-events/press-releases/detail/1745/intel-reports-second-quarter-2025-financial-results