Nasdaq and S&P 500 Soar as Stock Market Rallies on Tech Earnings, Tariff Tension

Nasdaq, S&P 500 and Dow Extend Rally as Tech Earnings and Tariff Tension Collide

S&P 500 (^GSPC), Nasdaq (^IXIC), Dow Jones (^DJI) Surge Amid Tech Momentum

Wall Street stormed into Monday with force as the S&P 500 rose 0.6% to 6,331, the Nasdaq Composite surged 0.7% to a record 21,039, and the Dow Jones Industrial Average added 209 points, or 0.5%, to 44,547. Tech names powered the rally ahead of major earnings releases from Alphabet (GOOGL) and Tesla (TSLA), while ongoing uncertainty around President Trump’s Aug. 1 tariff deadline loomed in the background.

Tech Giants Fuel Gains: Alphabet (GOOGL), Meta (META), Apple (AAPL)

Mega-cap tech was the engine behind the day’s momentum. Alphabet (GOOGL) jumped 2.1% to $188.87 as analysts hiked price targets on optimism around its GenAI platform, Gemini. Meta Platforms (META) added 1.3% to $712.57 and Apple (AAPL) climbed 1.1%, reflecting broader investor appetite for AI-linked growth stories. Even Amazon (AMZN) and Microsoft (MSFT) posted marginal gains, showing breadth in the rotation back into Big Tech.

Tesla (TSLA) Faces Pressure from China Tariffs Ahead of Earnings

Despite general tech enthusiasm, Tesla (TSLA) dipped 0.3% to $242.65. The EV maker is battling two major headwinds: softer deliveries and tariff exposure. Although Tesla manufactures in the U.S., it depends on Chinese battery components, exposing it to Trump’s incoming import duties. Bank of America warned that earnings could disappoint despite the stock trading at a forward P/E above 160—a glaring premium to the S&P 500’s 22x multiple.

Earnings Outperform So Far, But Bar Is Rising

Q2 earnings season has started with a bang. Of the 62 S&P 500 companies that have reported, 85% beat EPS estimates. FactSet now expects 5.6% YoY earnings growth—the slowest since Q4 2023 but still better than feared. However, Netflix (NFLX) is a cautionary tale: the stock fell 5% last week despite a beat on both revenue and earnings, highlighting the unforgiving market reaction to anything short of perfection.

Cleveland-Cliffs (CLF), Verizon (VZ), Domino’s (DPZ) Post Strong Results

Cleveland-Cliffs (CLF) rocketed 13% to $10.73 after reporting record Q2 steel shipments and crediting Trump’s tariffs for revitalizing domestic manufacturing. CEO Lourenco Goncalves signaled more upside as foreign competitors face U.S. barriers. Verizon (VZ) gained over 4% to $42.58 after beating on both revenue ($34.5B) and EPS ($1.22 vs. $1.18 est.) and raising its 2025 profit outlook. Domino’s Pizza (DPZ) rose 3% to $468.56 on better-than-expected same-store sales growth of 3.4%, though EPS missed at $3.81 vs. $3.95 consensus.

Momentum Watch: Invesco S&P 500 High Beta ETF (SPHB) Hits All-Time High

The Invesco S&P 500 High Beta ETF (SPHB) surged past $103, a fresh intraday all-time high. High-beta stocks like Super Micro (SMCI), CrowdStrike (CRWD), ON Semi (ON), and Deckers (DECK) each rose over 2%, showcasing a market hungry for volatility despite underlying macro risks.

Downgrades and Upgrades: Target (TGT) Cut, Dollar Tree (DLTR) Boosted

Target (TGT) slipped 0.6% to $102.85 after Barclays downgraded the stock to Underweight, citing persistent weakness in general merchandise and a lack of strategic shift. In contrast, Dollar Tree (DLTR) climbed 2.1% to $112.41 following an upgrade to Overweight on cleaner growth post-Family Dollar divestiture and rising price momentum from its multi-price point model.

Crypto Stocks Lifted by Ether ETF Inflows and Legislation

Ether-linked firms rallied as ETH rose above $3,820. Bitmine Immersion Technologies, Bit Digital, and SharpLink Gaming all surged, while SPAC Dynamix Corp., merging into "The Ether Machine," soared 30%. This follows $2.18 billion in weekly inflows into ETH ETFs and Trump’s signing of landmark crypto legislation, solidifying stablecoin oversight and boosting market legitimacy.

Trump Media (DJT) Spikes on $2 Billion Bitcoin Treasury Move

Trump Media (DJT) jumped 6% Monday after disclosing it had acquired $2 billion in Bitcoin (BTC-USD), now comprising two-thirds of its $3 billion asset base. The move mirrors MicroStrategy (MSTR) and adds a speculative kicker to an already politically sensitive equity.

JPMorgan Warns of AI-Driven Crowding Risk: Palantir (PLTR), Nvidia (NVDA), Coinbase (COIN)

In a note to clients, JPMorgan flagged extreme crowding into high-beta AI and speculative names like Palantir (PLTR), Coinbase (COIN), and Nvidia (NVDA), citing "100th percentile" positioning. This is the third such episode in 2025. JPM recommends rotating into low-volatility names such as Coca-Cola (KO) and CME Group (CME), warning of a swift unwind if sentiment shifts.

Tariff Deadline Looms as EU Negotiation Gaps Persist

Commerce Secretary Lutnick reaffirmed Aug. 1 as a "hard deadline" for tariff compliance, with no formal deal yet in place with the EU. The bloc is considering an unbalanced agreement but faces internal divisions. Stellantis (STLA) is already reporting a $350M hit from duties and forecasting a full-year impact of up to $1.6B.

Rotation Signals: Block (XYZ) Added to S&P 500, Opendoor (OPEN) Goes Parabolic

Block (XYZ) surged 8.3% to $78.89 after being added to the S&P 500, a move expected to prompt 54 million shares in index-linked buying. Meanwhile, meme-driven Opendoor (OPEN) exploded 70% to $3.83 after gaining 188% last week, now riding momentum from EMJ Capital's bullish thesis and retail enthusiasm via r/WallStreetBets.

Asia Mixed, Commodities Steady, Oil Eyes Sanctions Impact

Asia-Pacific markets closed mostly higher with Kospi up 0.7%, Hang Seng gaining 0.68%, and CSI 300 up 0.67%. Australia’s ASX 200 dropped 1%. Oil was flat with WTI crude (CL=F) at $67.14 and Brent (BZ=F) at $69.33, as fresh Russia sanctions spooked global refiners. The U.S. Dollar Index weakened to 94.98, while Bitcoin rose to $118,837.

Verdict: Despite lofty valuations, strong earnings momentum and tariff-driven protectionist tailwinds continue to push U.S. indices higher. The S&P 500 and Nasdaq remain Buy-rated into earnings catalysts, particularly on the back of mega-cap dominance and dovish Fed expectations. Selective caution is warranted in high-beta names due to crowding risks flagged by JPMorgan. Tesla (TSLA) is a Hold ahead of its earnings due to tariff risk and delivery softness. Alphabet (GOOGL) remains a strong Buy on AI tailwinds. Target (TGT) and Stellantis (STLA) are both Sell-rated based on deteriorating fundamentals and macro exposure.

That's TradingNEWS