FX.co ★ S&P 500, Nasdaq Hit Records on Alphabet Boost

On Thursday, both the S&P 500 and the Nasdaq 100 reached new record highs, with the indices rising by 0.1% and 0.2%, respectively. This uptick was largely driven by robust earnings from Alphabet, which reinforced investor confidence in artificial intelligence investments. Alphabet's shares increased by 1% after the company surpassed expectations for the second quarter and announced a $10 billion increase in its 2025 capital expenditures forecast. This positive outlook also buoyed shares of other major tech names, including Microsoft, Nvidia, and Amazon. In contrast, Tesla's stock dropped 7.9% following a warning from CEO Elon Musk about potentially challenging upcoming quarters. The Dow Jones Industrial Average underperformed, shedding 270 points, primarily due to an 8% decrease in IBM's share value following disappointing revenue figures and a 4.7% decline in UnitedHealth's stock, which disclosed a Department of Justice investigation. Additionally, market participants paid close attention to President Trump's unexpected visit to the Federal Reserve, where he increased pressure on Chair Jerome Powell regarding interest rate policies. Concurrently, trade negotiations remained in the spotlight, with reported progress in discussions with the European Union, Japan, and South Korea. However, President Trump suggested that tariffs would not drop below 15%.