The U.S. stock market wrapped up a strong trading week with major indices reaching new heights, led by the S&P 500’s five-session streak of record closes. Investor confidence was bolstered by upbeat corporate earnings and positive developments in global trade negotiations.
S&P 500’s Historic Rally Extends
On July 25, 2025, the S&P 500 climbed 0.4% to close at 6,388.64, marking its 14th record close of the year. The Nasdaq Composite rose 0.24% to 21,108.32, posting its 15th record close of 2025. Notably, both indexes hit all-time intraday highs during the session.
Meanwhile, the Dow Jones Industrial Average added 208.01 points, or 0.47%, to finish at 44,901.92—just 0.25% shy of its all-time high set on December 4, 2024.
All three major indices ended the week higher. The Dow advanced 1.3%, the Nasdaq gained 1%, and the S&P 500 led with a 1.5% increase.
Strong Earnings Drive Market Momentum
The ongoing second-quarter earnings season continued to fuel market optimism. Major corporations reported better-than-expected results, reinforcing positive sentiment on Wall Street.
Alphabet’s stock surged 4% during the week following a robust earnings beat. Verizon also rallied 5% after surpassing analyst expectations.
According to FactSet, more than 82% of the 169 S&P 500 companies that have reported so far exceeded Wall Street’s earnings forecasts—a sign of corporate resilience amid global economic uncertainty.
Trade Developments Add Fuel to the Rally
In addition to earnings, recent trade announcements helped propel markets to new highs. Earlier this week, U.S. President Donald Trump revealed a “massive” trade agreement with Japan, including a 15% reciprocal tariff deal.
Trump also disclosed that the U.S. and Indonesia had agreed on a new trade framework. In a significant diplomatic move, European Commission President Ursula von der Leyen confirmed via social media that she and President Trump would meet in Scotland on July 27 to advance a potential trade deal between the U.S. and the EU—just ahead of a looming August 1 tariff deadline.
Looking Ahead: Earnings and Fed Meeting in Focus
Investors are bracing for the busiest week of earnings season, with over 150 S&P 500 companies scheduled to report. Among them are several members of the “Magnificent Seven,” including Meta Platforms and Apple.
Attention is also turning to the Federal Reserve’s upcoming policy meeting. Analysts widely expect the Fed to keep interest rates unchanged at 4.25%–4.5%, given steady economic growth and manageable inflation levels.
Investment Perspective: Opportunity Amid Record Highs?
While the record-breaking rally presents promising opportunities—particularly in leading sectors such as technology, finance, and consumer goods—investors should remain cautious of short-term pullbacks after the rapid gains.
Key macroeconomic drivers, including Fed policy decisions, trade developments, and corporate earnings results, will continue to shape market sentiment through August.
In this environment, a prudent investment strategy involves focusing on fundamentally strong stocks with long-term growth potential, rather than chasing momentum-driven rallies.
Tiếng Việt
English
