S&P 500, Nasdaq hit fresh records as strong earnings, retail sales lift investor sentiment

US stock markets surged to record highs on July 17, buoyed by stronger-than-expected economic data and a wave of upbeat corporate earnings that reinforced investor confidence in the resilience of the American consumer. The S&P 500 climbed 0.54 per cent to close at a record 6,297.36, while the Nasdaq Composite advanced 0.74 per cent to 20,884.27, marking its tenth record close of 2025. The Dow Jones Industrial Average also added 229.71 points, or 0.52 per cent, finishing at 44,484.49.

It was the latest leg in a market rally that has seen the Nasdaq notch record finishes in six of the last seven sessions and the S&P 500 tally six new highs since late June. The rally follows a volatile spring marked by trade policy uncertainty, particularly after President Donald Trump’s April announcement of sweeping tariff measures.

Retail sales, jobless claims fuel economic optimism

The gains were driven by fresh economic data that suggested continued strength in the US economy. The US Census Bureau reported that retail sales rose 0.6 per cent in June, beating the 0.2 per cent consensus estimate, signalling that American consumers remain resilient despite rising prices from tariffs and inflation pressures. Additionally, the Labor Department reported initial jobless claims fell to 221,000, down 7,000 from the prior week.

Fed Governor Adriana Kugler said the central bank would hold off on rate cuts as it monitors the inflationary impact of President Trump’s tariffs. Market pricing now shows a 54 per cent chance of a September rate cut, while a July move is increasingly unlikely, according to CME’s FedWatch tool.

Corporate earnings boost tech, consumer stocks

More than 88 per cent of companies that have reported second-quarter results so far have beaten earnings expectations, according to FactSet. Consumer-facing firms and tech giants were among the biggest gainers.

PepsiCo surged 7.5 per cent after beating earnings forecasts and delivering upbeat guidance, driven by demand for energy drinks and healthier product lines. United Airlines rose 3.1 per cent, predicting stronger travel demand into the second half of the year, despite industry headwinds from budget cuts and trade tensions. Rivals Delta and American Airlines each climbed over 1.4 per cent.

Tech stocks also gained after Taiwan Semiconductor Manufacturing Co. (TSMC) posted record quarterly profits, citing surging demand for AI chips. TSMC’s US-listed shares rose 3.4 per cent, while Nvidia and Marvell gained 1 per cent and 1.6 per cent, respectively.

Ameriprise’s chief market strategist Anthony Saglimbene said the strong TSMC results bode well for the broader tech sector ahead of Big Tech earnings. “The setup is pretty positive, which is why tech is leading the way,” he said. As Wall Street continues to assess Trump’s tariff policies and Fed signals, investors appear encouraged by robust consumer activity and corporate performance—a combination that could keep the bull market charging ahead.

(With inputs from agencies)