New York, USA – July 18, 2025 –
Wall Street closed out a powerful trading day on Thursday, July 17th, with the S&P 500 and Nasdaq Composite soaring to fresh record highs. A potent combination of robust corporate earnings reports and encouraging economic data fueled investor optimism, extending the market’s bullish run.
The S&P 500 (SPX) climbed 0.5%, marking its first record close in a week, while the tech-heavy Nasdaq Composite (IXIC) added 0.7%, achieving its fourth consecutive record finish. The Dow Jones Industrial Average (DJI) also saw gains, rising 0.5%, bringing the blue-chip index within 1% of its own all-time high, last set in December.
Earnings Season Delivers Positive Surprises
A major catalyst for the market’s ascent was a series of better-than-expected earnings reports from major corporations. PepsiCo (PEP) shares notably jumped 7.5%, pacing the Nasdaq 100 gainers. The beverage and snacks giant reported strong second-quarter results, surpassing Wall Street’s expectations for both earnings per share ($2.12 vs. $2.03 forecasted) and revenue ($22.73 billion vs. $22.25 billion anticipated). The company highlighted robust international sales growth and strategic productivity initiatives as key drivers of its performance. PepsiCo also reaffirmed its full-year guidance, projecting an improvement in core earnings per share decline.
The continued enthusiasm for AI-related technology stocks also played a significant role. Chipmaker Nvidia (NVDA) gained about 1%, building on its impressive performance earlier in the week when it became the first company ever to reach $4 trillion in market capitalization. Other large technology companies like Broadcom (AVGO) and Microsoft (MSFT) also saw gains, reflecting ongoing investor confidence in the growth trajectory of artificial intelligence and related sectors. Taiwan Semiconductor Manufacturing Company (TSMC) also contributed to the positive sentiment with strong Q2 profits and raised full-year revenue forecasts, primarily due to booming AI chip demand.
Economic Data Paints an Optimistic Picture
Beyond corporate earnings, encouraging economic indicators provided further impetus for the rally. New data released on Thursday showed a better-than-expected decline in weekly unemployment claims, signaling continued strength in the labor market. Initial jobless claims for the week ending July 12 fell by 7,000 to 221,000, suggesting a resilient employment landscape despite ongoing economic adjustments.
While specific manufacturing growth figures for July 17th were not the primary focus of the day’s economic releases, the broader narrative of resilient economic data, including a surprise jump in retail sales for June, contributed to the positive sentiment. This indicates that consumer spending remains robust, underpinning economic activity.
Treasury Yields Mixed Amidst Economic and Policy Signals
In the bond market, Treasury yields saw a mixed performance. The 10-year Treasury yield rose slightly to 4.47%, reflecting a continued upward trend over recent trading days. Conversely, the 30-year Treasury yield saw a modest decline to 5.013%. This mixed movement in yields reflects an ongoing debate among investors and Federal Reserve officials regarding the future trajectory of interest rates.
San Francisco Fed President Mary Daly indicated that two rate cuts this year could be “reasonable,” while Fed Governor Adriana Kugler cautioned against cutting rates too soon, citing accelerating inflation potentially driven by tariffs. President Trump’s recent letters to over 20 trade partners, setting new baseline tariffs of 20%-40%, add another layer of complexity to the economic outlook, as investors weigh potential inflationary pressures against the backdrop of a strong labor market and corporate performance.
Overall, July 17th proved to be a banner day for Wall Street, demonstrating the market’s resilience and its ability to find upward momentum driven by fundamental strengths in corporate performance and key economic indicators.
