Wall Street ends week at record highs on trade optimism, earnings boost
&imwidth=600&imheight=450&format=webp&quality=medium "Wall Street ends week at record highs on trade optimism, earnings boost")
Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York City, US, January 26, 2023. Photograph: (Reuters)
All three major indexes posted solid weekly gains: the S&P 500 rose 1.5 per cent, the Dow added 1.3 per cent, and the tech-heavy Nasdaq climbed 1 per cent. More than 82 per cent of S&P 500 companies that have reported earnings so far have topped analyst expectations.
Wall Street closed out a stellar week with fresh record highs on July 25, lifted by upbeat earnings results, progress on US trade deals, and investor optimism ahead of a pivotal Federal Reserve meeting next week. The S&P 500 rose 0.40 per cent to finish at 6,388.64, marking its 14th record close of 2025 and capping a week of five straight record finishes. The Nasdaq Composite added 0.24 per cent to close at 21,108.32, notching its 15th record close this year. The Dow Jones Industrial Average climbed 208.01 points, or 0.47 per cent, ending at 44,901.92, just shy of its all-time high.
All three major indexes posted solid weekly gains: the S&P 500 rose 1.5 per cent, the Dow added 1.3 per cent, and the tech-heavy Nasdaq climbed 1 per cent. More than 82 per cent of S&P 500 companies that have reported earnings so far have topped analyst expectations, led by strong showings from Alphabet and Verizon.
Earnings shake up markets
Among notable movers, Deckers Outdoor surged 11 per cent after posting quarterly earnings that beat estimates, driven by strong international demand for its UGG and Hoka brands. In contrast, Intel sank 8.5 per cent after forecasting steeper-than-expected losses and announcing job cuts.
Charter Communications tumbled 18 per cent following a disappointing broadband subscriber report, while Centene rose 6.1 per cent on improved outlooks for its government-backed healthcare businesses. Paramount Global dipped 1.6 per cent after regulators cleared its $8.4 billion merger with Skydance Media.
Sector-wise, nine of the 11 S&P 500 groups advanced, with materials and industrials leading gains.
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Trade deal hopes and Fed in focus next week
Markets were buoyed by optimism that the US is on the cusp of finalising a trade deal with the European Union. European Commission President Ursula von der Leyen confirmed plans to meet US President Donald Trump in Scotland on July 27, aiming to conclude an agreement before the August 1 tariff deadline. Trump earlier said the odds of a deal were “50-50.” Recent trade accords with Japan and Indonesia have also helped lift sentiment, reducing the risk of near-term tariff escalation.
Next week brings a key Federal Reserve decision, with policymakers widely expected to keep interest rates steady at 4.25-4.50 per cent. Markets are currently pricing in a 60 per cent chance of a rate cut by September, according to CME’s FedWatch tool.
With over 150 S&P 500 companies—including tech giants like Apple, Microsoft, Meta, and Amazon—set to report earnings, investor attention will remain laser-focused on corporate guidance and macro signals. Despite concerns about elevated valuations and revived meme-stock activity, volatility remains muted, with the VIX closing below 15, reflecting the market’s growing confidence.