On the 21st (local time), the Standard and Poor's (S&P) 500 index and the Nasdaq index hit record highs, bolstered by robust performances from corporations.
However, the Dow Jones Industrial Average edged down, closing with mixed results on the New York Stock Exchange. It is analyzed that investors showed a wait-and-see attitude ahead of the upcoming big tech earnings reports and the tariff imposition deadline approaching on the 1st of next month.
On that day, the Dow Jones Industrial Average closed at 44,323.07, down 19.12 points (0.04%) from the previous trading day.
In contrast, the S&P 500 index, centered on large-cap stocks, closed up 0.14% at 6,305.60, surpassing the 6,300 mark for the first time in history. The S&P 500 index has set a record for the tenth time this year.
The Nasdaq Composite Index, focused on tech shares, also closed at 20,974.17, up 0.38%, setting a new closing record.
Experts analyzed that as the second-quarter earnings reports began, the strong performance of major corporations boosted investor sentiment.
According to market research firm FactSet, more than 85% of the S&P 500 corporations that have reported earnings so far have exceeded market expectations.
Verizon, a telecommunications company that reported its earnings that day, saw its stock rise sharply by 4% after raising its annual profit outlook. Bank of America (BofA) projected that corporate earnings for the second quarter would grow by 5% compared to the same period last year.
In particular, investors' attention is focused on the 'Magnificent 7 (M7)' that will report earnings one after another this week.
On the 24th (local time), Alphabet, Google's parent company, will release its earnings, and its stock rose by more than 2% that day, reflecting market expectations. Stocks of Amazon and Meta Platforms also rose by more than 1% each.
However, on the same day before its earnings report, Tesla's stock fell about 0.35%.
FactSet predicted that the M7's second quarter profit growth rate would reach 14%, significantly surpassing the expected growth rate of the remaining 493 S&P 500 corporations (3.4%).
However, the imminent tariff imposition deadline on the 1st of next month under the Donald Trump administration continues to leave uncertainty concerns for investors.
U.S. Commerce Secretary Howard Rutnik said the day before, "August 1st is a firm deadline for the tariff imposition," while adding, "It does not prevent countries from talking to us after August 1st."
In the market, there is more focus on the fundamentals of corporations rather than tariff issues.
Jay Hatfield, CEO of Infrastructure Capital Advisors, said, "Once tech stocks start to move, a 'risk appetite rally' will follow."
Michael Antonelli, managing director at Baird, said, "(The tariff issue) is clearly swirling in the background, but it is not dragging the market down as it did last April," analyzing that results are being drawn within a range that does not deviate from market expectations.