The S&P 500 and the Nasdaq hit record highs on Monday, lifted by Alphabet and other megacaps ahead of several earnings reports this week, while investors bet on potential trade deals to blunt economic damage from the Trump administration’s global tariffs.
Google-parent Alphabet (GOOGL.O), opens new tab rallied over 2% ahead of its quarterly report on Wednesday. It and Tesla (TSLA.O), opens new tab, also reporting on Wednesday, kick off earnings from the so-called “Magnificent Seven”, and their results may set the tone for other heavyweight companies reporting in the next several days.
Tesla traded near flat, while Apple (AAPL.O), opens new tab and Amazon (AMZN.O), opens new tab each rose about 1%.
Verizon (VZ.N), opens new tab rallied 5% after the telecommunications company boosted its annual profit forecast.
Analysts on average expected S&P 500 companies to report a 6.7% increase in earnings for the second quarter, with Big Tech driving much of that gain, according to LSEG I/B/E/S.
“So far, companies that have reported have, in general, met or beat guidance from the prior quarter, and we haven’t seen any degradation either in corporate profits or consumer spending,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
