Stock market update:
US large-cap stocks were mixed as the technology sector dragged on a fresh sell-off in Tesla (TSLA), but the broader market had plenty of momentum with the S&P 500 and Nasdaq hitting new record highs. The S&P 500 climbed 0.8% and the Nasdaq gained 0.7%. Market breadth started the day at a level that can suggest positive sentiment, with 73% of S&P 500 stocks trading above their 50-day moving averages. The top sectors on that metric were information tech, materials, industrials and consumer discretionary, which could point to solid demand for these names even if the tariffs issue remains in the background.
Tariff concerns helped to sway investors early this morning, but President Trump’s decision to delay the implementation of new trade penalties and reports suggesting that the United States and the European Union are close to a deal at 15% tariffs lifted the markets. Treasury auctions later today may provide more feedback on demand for U.S. debt and help offset any potential further tariff-related anxiety.
Earnings are also front and center this week, with several reports expected this morning including Conagra (CAG), Delta (DAL) and Levi Strauss (LEVI). Intuit (TUIT) and Workday (WDAY) both stumbled after reporting earnings that were slightly below expectations. Across the economy, analysts are still expecting second quarter earnings per share growth of less than 7%. Learn more in the Schwab Earnings Preview.
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