The three major indices of the New York Stock Exchange closed higher, boosted by better-than-expected performances from major corporations and optimism over progress in trade negotiations between the United States and the European Union (EU).
On the 25th (local time), the Dow Jones Industrial Average closed at 44,901.92, up 208.01 points (0.47%) from the previous day on the New York Stock Exchange (NYSE). The Standard & Poor's (S&P) 500 Index rose 25.29 points (0.40%) to 6,388.64, while the technology-focused Nasdaq Index finished up 50.36 points (0.24%) at 21,108.32.
All three major indices showed an upward trend this week. The Dow Jones rose 1.3% on a weekly basis, the S&P 500 increased by 1.5%, and the Nasdaq gained 1%. Notably, the S&P 500 Index set new all-time highs for five consecutive trading days this week, and the Nasdaq Index also broke records for three consecutive days.
The rise in stock prices was significantly influenced by the 'earnings surprise' of major corporations in the United States as the second-quarter earnings announcement season began. According to market research firm FactSet, of the 169 S&P 500 corporations that have reported earnings so far, 82% exceeded market expectations.
Additionally, expectations of easing trade tensions between the U.S. and the EU also stimulated investor sentiment. Earlier, the Trump administration announced a trade agreement with Japan and is now nearing the end of negotiations with the EU. Ursula von der Leyen, President of the European Commission, noted on the social media platform X (formerly Twitter) that she had a conversation with President Trump and stated, "We are scheduled to discuss Atlantic trade relations and future cooperation plans in Scotland on the 27th."
Next week, earnings announcements from big tech corporations like Apple and Meta Platforms are expected, but opinions are divided on whether the upward trend in the New York Stock Exchange will continue. Mark Hackett, chief market strategist at Nationwide, diagnosed that "as concerns that had been suppressing the market—such as a tight labor market, weakened consumer demand, trade tensions, and rumors of the dismissal of Federal Reserve Chair Powell—have not materialized, the stock market is maintaining a stable upward trend."
On the other hand, Thomas Martin, chief portfolio manager at Global T Investment, warned that "as the market reflects expectations for a resolution of trade negotiations, disappointment could be greater if the negotiations fall through."