By Alex Financials

💹 U.S. Markets Hit New Highs on Trade and Tech Optimism

S&P 500 and Nasdaq Rebound
The S&P 500 climbed 0.29% to 6,315.13 and the Nasdaq gained 0.53% to 21,006.05, both reaching all-time highs. Investors cheered signs of progress in U.S.–EU trade talks, despite looming threats of 30–50% tariffs on imports. Meanwhile, bond yields eased this morning, aiding equity valuations.

Earnings Kick Off with Key Reports
Earnings season is heating up. Roughly 83% of S&P 500 firms reporting this week have beaten expectations, per FactSet. The “Magnificent Seven” — led by Tesla $TSLA and Alphabet $GOOGL — are set to release results, adding momentum.

🔍 Trade Black Clouds and Market Psychology

Tariff Drama Continues
U.S. Commerce Secretary Howard Lutnick insists on the August 1 “hard deadline” for EU tariffs—but talks are still ongoing. The EU is preparing countermeasures should tariffs exceed 15%. Despite this, many investors are assuming that Trump will “chicken out” of full implementation—a strategy dubbed the “TACO trade”.

Nostalgia Wave?
The Nasdaq‑100 has stayed above its 20‑day moving average for 60 days—the longest stretch since February 1999. While the 23% YTD gain is flying under bubble territory, some caution is warranted as momentum investors chase speculative names.

🏢 Spotlight: Key Corporate Movers

Verizon $VZ
Verizon beat Q2 expectations with EPS of $1.22 and $34.5 B revenue. It raised full-year guidance and free cash flow outlook to $19.5–20.5 B, lifting shares ~2.6%.

Cleveland‑Cliffs $CLF
The steelmaker posted a narrower-than-expected Q2 loss and strong shipment growth, benefiting from Trump’s expanded steel tariffs. Shares surged 14%, and CEO Goncalves signaled potential acquisitions.

Block (SQ)
After being added to the S&P 500, Block’s shares shot up nearly 8%.

Winners & Losers Roundup

• Alphabet $GOOGL, Tesla $TSLA, Arm, Meta: buoyed by AI hype, preparing for earnings .

• Domino’s Pizza $DPZ: gains faded after a mixed earnings update .

• EQT and natural-gas stocks weakened as natural-gas prices dropped .

🌍 Global Market Snapshot

India’s Markets Strengthen
Sensex rose ~442 points, and Nifty crossed 25,050, led by strong Q2 earnings from HDFC Bank and ICICI Bank. This lifted confidence across Dalal Street, partly offset by underperforming Reliance Industries .

Caution in Europe & Asia
European stocks tread water amid tariff uncertainty and mixed corporate news . Asian markets also opened higher, with eyes on U.S.–EU developments .

🔮 Outlook & Key Catalysts This Week

1. Big‑Tech earnings
   Results from Tesla $TSLA (Wed), Alphabet $GOOGL, Intel $INTC, and Coca‑Cola $KO will set the tone .

2. Tariff cliff on August 1
   Watch negotiations and any tariff escalations or rollback announcements .

3. Fed outlook via Powell
   Markets are pricing ~60% odds of a September rate cut—his remarks later this week are critical .

✅ Final Take

U.S. markets are riding a wave of record highs despite trade uncertainty and caution flags. Solid earnings—especially from telecom, steel, and the Magnificent Seven—are offsetting tariff jitters. That said, summer waters remain choppy: late‑cycle technical signals, trade policy cliffs, and upcoming central-bank commentary could spark volatility. Concentrating on mega‑cap tech earnings, trade developments, and rate‑cut expectations will be key in navigating the next few days.