[New York Stock Market Briefing] Rise on optimism over US-EU trade talks…S&P hits record high for 5th straight day

The three major New York stock indices rose on optimism about progress in trade negotiations between the US and the European Union (EU), and on the back of major companies’ better-than-expected earnings.

On the 25th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 44,901.92, up 208.01 points (0.47%) from the previous day. The S&P 500 index increased by 25.29 points (0.40%) to 6,388.64, and the tech-heavy NASDAQ index finished up 50.36 points (0.24%) at 21,108.32.

On a weekly basis, all three indices posted gains. The Dow was up 1.3% this week, the NASDAQ rose 1%, and the S&P 500 increased by 1.5%. Notably, the S&P 500 set a new all-time high for the fifth consecutive session, while the NASDAQ hit a record high for the third straight session.

During the second quarter earnings season, major companies’ “earnings surprises” propelled index gains. According to market research firm FactSet, as of now, 82% of the 169 S&P 500 companies that have announced second-quarter results have reported figures above market expectations.

Hopes that trade tensions between the US and the EU will ease also alleviated market concerns. The Trump administration announced the conclusion of trade negotiations with Japan earlier this week and is now heading into final talks with the EU. The US and EU may reach a principle trade agreement by this weekend.

Ursula von der Leyen, President of the European Commission, announced on X (formerly Twitter) that she spoke with President Trump, stating: “We have agreed to meet in Scotland on Sunday (the 27th) to discuss transatlantic trade relations and how to strengthen them.”

President Trump mentioned the possibility of an agreement with the EU while speaking with reporters at the White House just before departing for Scotland. He emphasized, “This will be a deal where the EU must lower the 30% tariff it imposes on the US,” adding, “The EU encompasses a great deal of territory and many countries—it’s the largest counterpart right now.”

By stock, NVIDIA, which has recently been rallying and continually setting new record highs, fell slightly as profit-taking occurred. NVIDIA slipped 0.14% to $173.50, with its market capitalization dropping to $4.231 trillion.

In contrast, Tesla, which plummeted over 8% the previous day due to disappointing earnings, rebounded more than 5% on bargain hunting.

Amid anticipation for next week’s earnings announcements by major big tech companies such as Apple and Meta Platforms, there was a divergence of opinions about whether the bullish trend in the New York stock market would continue. Mark Hackett, Chief Market Strategist at Nationwide, noted in an investor memo, “The market continues its steady bullish trend as concerns that investors were worried about—such as a cooling labor market, reduced consumption, trade tensions, or the potential dismissal of Jerome Powell of the Fed—have not materialized.”

However, Thomas Martin, Senior Portfolio Manager at Globale Investment, assessed, “The market has priced in expectations of a successful trade deal, but if the negotiations fall through, there’s greater room for disappointment.”

Seulkee Lee, Hankyung.com reporter seulkee@hankyung.com