A Steady Rise in U.S. Stocks Leads to the S&P 500 Weekly Gains

U.S. stocks inched upward on Friday, positioning the S&P 500 Index for a positive weekly performance as equities continued to trade around all-time highs. Investors remained focused on the latest round of corporate earnings, while weighing signals from the Federal Reserve and broader economic indicators.

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By 9:36 a.m. in New York, the S&P 500 was up 0.2%, extending gains after setting a new record in the previous session. The tech-heavy Nasdaq 100 Index also rose 0.2%, having reached its own all-time high the day before.

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Despite Netflix Inc. delivering stronger-than-expected earnings across the board, its stock dropped 4.8%—likely due to profit-taking after the company had surged nearly 40% since April. Meanwhile, a key basket tracking the performance of the “Magnificent Seven” megacap tech stocks—which includes Nvidia, Apple, and Alphabet—rose by 0.6%.

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For the week, the S&P 500 had gained 0.8%, while the Nasdaq 100 advanced 1.6%, underscoring continued market optimism despite some profit-taking in high-flyer names.

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Among individual company moves, American Express initially traded higher after reporting that second-quarter spending by its wealthy customer base exceeded expectations. However, the stock later fell 2.8% as investors looked for more sustained signs of growth.

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On the other hand, Charles Schwab climbed 3.2% after announcing stronger-than-expected earnings per share, with the firm citing record client assets and increased trading revenue.

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Investor sentiment was further buoyed by comments from Federal Reserve Governor Christopher Waller, who hinted that the central bank could lower interest rates as early as this month to safeguard the labor market. Waller emphasized that with inflation relatively under control, the Fed should move proactively to ease borrowing costs rather than risk waiting until job market conditions worsen.

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Tom Essaye, founder of The Sevens Report, wrote in a note that while some weakness is appearing in import-sensitive industries—possibly tied to ongoing tariff effects—consumer spending as a whole remains solid and stronger than anticipated. This continued resilience is supporting the prevailing soft-landing narrative for the U.S. economy, which has been a key driver behind the 2025 market rally.

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As the Fed enters its traditional quiet period ahead of the July 30 policy meeting, investors are left to speculate on what could spark a significant breakout from the S&P 500’s current range-bound behavior. The index has now gone eight straight sessions without moving more than 0.61% in either direction—a sign of unusual calm, according to Bloomberg data.

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Economic data released Friday morning showed that housing starts rebounded in June, primarily due to a surge in multifamily construction. However, the single-family housing segment continued to struggle, reflecting challenges like oversupply and affordability concerns that have weighed on the housing market in recent months. Later in the day, markets awaited the University of Michigan’s latest consumer sentiment reading, which could offer further insight into household outlooks and spending patterns.

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Meanwhile, cryptocurrency-linked stocks moved higher following Congressional approval of a long-awaited bill to regulate stablecoins. The legislation is expected to pave the way for broader adoption of digital currencies in the mainstream financial system. Companies like Coinbase Global, Strategy, and Galaxy Digital all saw their shares climb in response.

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Elsewhere, industrial giant 3M Co. raised its full-year earnings guidance after beating second-quarter estimates. Shares rose 2.4%, as investors welcomed CEO William Brown’s efforts to streamline the company and deliver improved performance. The strong results suggest that 3M’s turnaround strategy is gaining traction.

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Looking ahead, auto manufacturers are preparing to report earnings, which will test whether their recent rally is supported by fundamentals. General Motors, Tesla, and Volkswagen are set to report next week, followed by Ford, Stellantis, Mercedes-Benz, and BMW in the days that follow. Toyota Motor Corp., the world’s largest automaker, along with Chinese carmaker Geely, will disclose results in August. Given that automakers have been at the center of U.S. trade tensions—especially under former President Donald Trump—investors will be watching closely to see how these companies are managing tariffs and global supply chain challenges.

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In corporate deal news, Union Pacific Corp. is reportedly considering acquiring Norfolk Southern Corp., which could mark the largest railroad merger in history. While Union Pacific’s stock remained unchanged, Norfolk Southern shares jumped 3% on the news, reflecting investor anticipation of a potentially transformative transaction in the freight industry.

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Altogether, markets showed signs of stability heading into the weekend, supported by solid earnings, dovish Fed signals, and resilient consumer activity. However, with central bank decisions looming and corporate earnings season still in full swing, traders remain on alert for the next catalyst that could jolt stocks out of their recent sideways pattern.

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