Wall Street Sees Strong Week with Fresh Records for S&P 500 and Nasdaq.

Wall Street ended the week on a high note, with the S&P 500 and Nasdaq setting fresh records. The Dow Jones Industrial Average rose by 0.2%. The strong week was driven by positive economic data and optimism about the US-China trade talks. The Nasdaq Composite and S&P 500 finished the week at record highs, with the Nasdaq up 0.5% and the S&P 500 up 0.3%.

Title: Wall Street Ends the Week on a High Note, Driven by Economic Optimism and Trade Talks

Wall Street concluded the week on a strong note, with the S&P 500 and Nasdaq Composite setting new records. The Dow Jones Industrial Average also rose by 0.2%, marking a positive week for the broader market. The week's performance was driven by encouraging economic data and optimism surrounding the ongoing US-China trade talks.

The Nasdaq Composite and S&P 500 both finished the week at record highs, with the Nasdaq up 0.5% and the S&P 500 up 0.3%. The S&P 500 reached a new all-time high, adding to its recent streak of record-setting weeks. This performance was buoyed by gains in key sectors, including technology and artificial intelligence (AI).

Alphabet, the parent company of Google and YouTube, delivered a fatter profit than expected for the latest quarter, leading to a 1% rise in its stock price. The company announced plans to increase its budget for AI investments by $10 billion to $85 billion this year. This news helped push up other AI stocks, with Nvidia, a leading chipmaker in the AI industry, rising by 1.7% [1].

However, the market was also influenced by a significant drop in Tesla's stock price. Tesla reported results for the spring that were roughly in line with analyst expectations, but the company's stock fell by 8.2% due to concerns about Elon Musk's political activities and potential economic challenges ahead [1].

The strong week was also supported by positive economic data. A report from the U.S. Department of Labor indicated that fewer U.S. workers applied for unemployment benefits last week, suggesting a potential easing of layoffs. Separately, a report from S&P Global showed that growth in U.S. business activity accelerated in July, easily topping economists' expectations. These positive indicators helped solidify expectations that the Federal Reserve will hold interest rates steady at its next meeting [1].

In the bond market, Treasury yields held relatively steady following the latest signals that the U.S. economy is holding up despite pressures from tariffs and other factors. The yield on the 10-year U.S. Treasury note briefly approached 4.44% in the morning before pulling back to 4.40%, where it was late Wednesday [1].

The week also saw significant movements in the international stock markets. Tokyo's stock market rose by 1.6%, and London's stock market gained 0.8%, among other notable increases in Asia and Europe [1].

The optimism surrounding the US-China trade talks was another factor driving the market's performance. The talks are expected to focus on China's high dependence on exports and the need to reduce excess production capacity in various industries. U.S. Treasury Secretary Scott Bessent has indicated that the negotiations may also discuss China's purchases of oil from Russia and Iran, which undercut American sanctions on these countries [2].

China has been working to address these issues for years, more for domestic reasons than to reduce its trade surpluses with the U.S. and other countries. The European Union has cited subsidies as a reason for imposing tariffs on electric vehicles made in China, and economists argue that China needs to transform into a more consumer-driven economy to counter deflation and boost consumption [2].

Overall, the week's performance was a reflection of the market's optimism about economic indicators and the potential for progress in US-China trade talks. Investors remain cautious, however, and will continue to monitor economic data and geopolitical developments closely.

References:
[1] https://www.detroitnews.com/story/business/2025/07/24/financial-markets-stocks-wall-street/85363331007/
[2] https://finance.yahoo.com/news/us-china-trade-talks-china-050354325.html