Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – July 27, 2025 at 07:02 AM

This week, the S&P 500 saw its fifth straight record close powered by solid earnings and positive trade developments, pushing the broad market index up by 0.40% to close at 6,388.64. The Nasdaq Composite also hit a record close, increasing by 0.24% to finish at 21,108.32. The Dow Jones Industrial Average rose 208.01 points to end at 44,901.92, just 0.25% off its record close from December 4.

For this week, the Dow gained roughly 1.3%, the Nasdaq advanced 1%, and the S&P 500 gained about 1.5%. Tech companies Alphabet and Verizon saw a notable uptick, growing 4% and 5% respectively within the week after reporting better-than-expected earnings.

The bulls were largely driven by favourable fundamentals – stable inflation, range-bound interest rates, and trending earnings. Trade agreements between the U.S. and its partners also had a significant role in driving the market to new heights. President Trump recently announced a “massive” trade agreement with Japan and framework for a trade accord with Indonesia, alleviating investor worries over tariffs and trade uncertainty.

Looking forward, the market expects to see over 150 S&P 500 companies report their quarterly results next week, including Meta Platforms and Apple. The Fed is also due to meet once again, with policymakers expected to maintain interest rates at the current 4.25% to 4.5% target range.

However, despite the favourable market conditions, some analysts suggest the recent gains might be driven by a “fear of missing out” rather than an assessment of financial fundamentals. Additionally, the market remains cautious over potential upheavals at the Federal Reserve and trade tariff uncertainties, which could impact the trajectory of the market in the coming months.

This week saw stock market gains, with the S&P 500 and Nasdaq hitting record levels and the Dow Jones Industrial Average rising by around 1.1%. This is due in part to the US-Japan trade agreement, which will see a 15% tariff on Japanese imports and Tokyo committing to a US investment of $550 billion. The ‘great deal’, as described by President Trump, has boosted optimism for further trade pacts before the sweeping tariffs kick-off on August 1.

While the EU, India, and other partner agreements were still in negotiations, progress was made with China according to Treasury Secretary Scott Bessent. Maintaining tariffs at an average of 15% will, economists note, limit damage to the global economy.

Tesla (TSLA) missed approximate earnings and revenue for Q2 but assured that its affordable model is on track for production in 2025. Alphabet (GOOG, GOOGL), Google’s parent company, exceeded expectations with strong performances from its advertising and cloud businesses, although capital expenditure will increase to $85 billion from the projected $75 billion.

Six months into President Trump’s second term showed the S&P 500 closing at an above 6,300 points for the first time and having recorded eight record milestones in the past month. Despite the record-breaking numbers, concerns for industry remain as stock markets trade at historically expensive valuations ahead of the tariff deadline.

Despite periods of severe volatility, the S&P 500 saw an increase of 5.2% since Trump’s inauguration, while Bitcoin rose to a record $123,000. Meanwhile, the U.S. dollar index has fallen by just under 11%.

US stocks experienced more record growth after New York’s Friday close with 11.3% growth for Deckers, the company behind Ugg boots, that outperformed Wall Street’s expectations. Edwards Lifesciences rose by 5.5%, reporting stronger profits for the quarter. This was offset by Intel, which fell by 8.5% due to a Q2 loss where a profit had been projected. Overall, the Dow Jones Industrial Average rose by 208.01 points to 44,901.92, S&P 500 increased by 25.29 points to 6,388.64, and Nasdaq composite added 50.36 points to 21,108.32.