U.S. stocks climbed toward new record highs on Monday as investors prepared for a busy week of earnings reports from major American companies. Despite concerns about tariffs imposed by President Donald Trump, Wall Street anticipates continued growth in corporate profits.
The S&P 500 rose 0.6% by early afternoon, surpassing its previous all-time high from Thursday. The Dow Jones Industrial Average increased by 233 points, or 0.5%, while the Nasdaq composite gained 0.7%, reaching its own record level.
Verizon Communications was a standout performer, jumping 5% after reporting stronger-than-expected quarterly profits and revenue. The company also raised its full-year profit and financial forecasts following the positive results.
However, Sarepta Therapeutics shares fell 4.2% after the FDA requested the company voluntarily halt shipments of its gene therapy for Duchenne muscular dystrophy due to safety concerns.
Block, the tech firm behind Square and Cash App founded by Jack Dorsey, surged 7.9% in its first trading day after announcing it will join the prestigious S&P 500 index, replacing Hess, which was acquired by Chevron. This change will take effect before trading starts Wednesday.
Steel producer Cleveland-Cliffs saw a 15.6% rally after reporting a smaller loss than expected in the spring quarter. The company set a record by shipping 4.3 million net tons of steel and its CEO noted the positive impact tariffs have had on domestic manufacturing. As a key supplier to the auto industry, Cleveland-Cliffs benefits from tariffs encouraging U.S. car makers to buy domestically produced steel.
While some companies are benefiting from tariffs, others face challenges as import costs rise. General Motors, Alphabet, Coca-Cola, and Tesla are among the big firms reporting earnings later this week amid these ongoing trade tensions.
Many of Trump’s proposed tariffs are currently paused as negotiations continue with trading partners, with an important deadline set for August 1.
Early results from this earnings season show most major U.S. companies are beating analysts’ expectations, a trend that often helps maintain investor confidence.
There are signs of optimism in consumer demand as well. United Airlines reported increased travel demand recently, and U.S. retail sales data has exceeded forecasts. According to Bank of America strategist Savita Subramanian, these indicators suggest American consumers remain relatively healthy, potentially providing ongoing support for economic growth.
For the stock market to sustain its momentum, companies will need to continue delivering strong profit growth, helping to alleviate concerns that stock valuations have become stretched despite uncertainties over tariffs and the economy.
In bond markets, Treasury yields declined, with the 10-year yield dropping to 4.36% from 4.44% on Friday.
Globally, European stock markets showed mixed performance, while most Asian markets ended modestly higher. Japan’s markets were closed for a holiday as the ruling Liberal Democratic Party lost its coalition majorities in both houses of parliament—the first time since 1955. Prime Minister Shigeru Ishiba vowed to remain in office despite voter dissatisfaction over rising prices and political instability. Analysts predict his weakened government may increase spending, adding to Japan’s already large debt load.
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