The U.S. stock market looked to be in a cautious holding pattern as investors awaited earnings results from key Big Tech firms and braced for new developments in U.S. trade policy. The Dow Jones Industrial Average hovered near flat, while the S&P 500 and Nasdaq Composite extended gains to fresh all-time closing highs Monday, driven by tech optimism.
Futures trade flat ahead of tech earnings
As of early Tuesday morning, futures tied to major indexes showed minimal movement:
- Dow Jones Industrial Average (YM=F): +0.02%
- S&P 500 (ES=F): flat
- Nasdaq 100 (NQ=F): -0.1%
Investors are looking ahead to second-quarter earnings from Alphabet and Tesla, set to be released Wednesday after the market close. With large-cap tech valuations soaring in 2025, Wall Street is eager for evidence that AI-driven growth and core business fundamentals can justify elevated prices.
Monday’s close: S&P 500 and Nasdaq break records
The S&P 500 rose 0.14% to finish at 6,305.60, its first close above the 6,300 mark. The Nasdaq Composite climbed 0.38% to end at a record 20,974.17. Meanwhile, the Dow edged lower by 19.12 points to 44,323.07, reflecting a muted outlook for industrials compared to tech.
According to Bank of America, earnings season has had a strong start, with 85% of S&P 500 companies reporting so far beating estimates. Second-quarter EPS is now tracking for 5% year-over-year growth, up from 4% the week prior.
Spotlight stocks: Nvidia, Oracle, Medpace
Several individual stocks are making headlines in premarket trading:
- Nvidia (NVDA): Fell nearly 1% following reports that FuriosaAI, a South Korean chip startup, secured a major contract after rejecting Meta’s acquisition offer.
- Oracle (ORCL): Dropped over 2% after reports that OpenAI’s Stargate project is scaling down ambitions to a smaller data center launch.
- Medpace (MEDP): Soared more than 40% premarket after beating revenue estimates, with Q2 sales rising over 14% year-over-year to $603.3 million.
Tesla and Alphabet earnings in focus
Tesla (TSLA), down about 20% year-to-date, faces heightened scrutiny amid concerns over its EV delivery slowdown and exposure to tariffs. Analysts warn that Elon Musk’s political activity may be weighing on investor sentiment. Meanwhile, Alphabet (GOOGL) stock rose over 2% Monday in anticipation of strong search and cloud revenues.
These reports are especially critical as the so-called “Magnificent Seven” mega-cap stocks are projected to drive the bulk of S&P 500 earnings growth this quarter.
Tariff deadline looms
Investors are also closely watching the August 1 tariff deadline imposed by President Trump. Over the weekend, Commerce Secretary Howard Lutnick reinforced the administration’s firm stance, stating that countries would begin paying tariffs on that date, although post-deadline negotiations could continue.
Market strategists warn that escalating global trade tensions, especially with the EU, could drag on investor sentiment and impact sectors like energy and consumer goods.
Oil prices dip on demand concerns
Crude prices declined early Tuesday as trade uncertainty weighed on demand forecasts:
- Brent crude (BZ=F): $68.49, down 1.04%
- WTI crude (CL=F): $66.69, down 0.76%
The August WTI contract expires today. Analysts say tariff risks and new U.S. sanctions on Russian crude are key drivers behind the drop.
What analysts are saying
“Even small surprises could trigger sharp reactions,” said Mark Hackett of Nationwide. “With the FOMC meeting, GDP data, earnings, and tariff deadlines all converging, volatility could spike.”
“The market is doing what it normally does after recovering from a 20% correction — gaining another 10%,” noted CFRA’s Sam Stovall. “We could see the S&P 500 hit 6,600 before the next pullback.”