U.S. stocks continued their upward momentum on Friday, inching toward more record highs and wrapping up what’s shaping to be another winning week. By midday trading, the S&P 500 had risen 0.2%, adding to its recent streak of all-time highs. It’s poised to post gains in four of the last five weeks. The Dow Jones Industrial Average was up by 66 points, or 0.1%, while the Nasdaq composite gained 0.3%, reaching another record following its previous day’s high.
Footwear maker Deckers Brands saw its stock soar 12.7% after posting stronger-than-expected results for its spring quarter. The company, known for Ugg boots and Hoka running shoes, saw significant international growth, with overseas sales nearly doubling.
Medical device firm Edwards Lifesciences climbed 5.8% after reporting robust earnings and revenue, beating Wall Street projections. The company noted broad strength across all its product lines and said it now expects full-year profits to hit the higher end of its earlier guidance.
Those gains helped balance out a 9.2% slide in Intel shares. The chipmaker reported a quarterly loss when analysts had expected a profit. It also announced plans to cut thousands of jobs and reduce expenses in a bid to turn around its business. Once a dominant force in the tech world, Intel has lost ground to competitors like Nvidia and AMD, especially as demand for AI-related chips grows rapidly.
Investors are closely watching corporate earnings, as strong profit growth is needed to support the stock market’s recent surge. Optimism has also been fueled by expectations that President Donald Trump could secure new trade agreements, reducing the threat of tariffs that many fear could lead to recession and higher inflation. Recent trade progress includes deals with Japan and the Philippines. A key deadline on trade negotiations is coming up on August 1.
Next week, markets will turn their attention to the Federal Reserve’s upcoming meeting on interest rates. On Thursday, Trump once again urged the Fed to cut rates, suggesting it could help lower the government’s debt payments. However, Fed Chair Jerome Powell has said he wants more data on how tariffs are affecting the economy and inflation before making any decisions. While lower rates can stimulate growth, they also risk fueling inflation.
If inflation expectations rise, lower short-term rates from the Fed might not reduce long-term borrowing costs for the government—in fact, they could increase them.
Most market watchers expect the Fed to hold off on cutting rates again until September.
In the bond market, yields remained relatively steady following Trump’s renewed push for a rate cut. He also appeared to step back from previous threats to remove Powell from his position. “To do that is a big move, and I don’t think that’s necessary,” Trump said. “I just want to see one thing happen, very simple: Interest rates come down.”
Firing Powell could cause market turmoil, as it would raise fears about the Fed’s independence—something many believe is essential for making tough economic decisions.
The yield on the 10-year Treasury note dipped slightly to 4.40% from 4.43% a day earlier. The two-year yield, which is more sensitive to Fed policy expectations, inched up to 3.92% from 3.91%.
Meanwhile, global markets mostly declined. European and Asian indexes were broadly lower. Stocks dropped 1.1% in Hong Kong and 0.3% in Shanghai. U.S. Treasury Secretary Scott Bessent announced plans to meet with Chinese officials in Sweden next week to work on a potential trade deal ahead of an August 12 deadline. Trump also hinted that a visit to China may be on the horizon, signaling a further easing of trade tensions.
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