Wall Street Rises on Trade Optimism as Tech Earnings Take Center Stage

21 July 2025

A monitor displays stock information on the floor of the New York Stock Exchange.Photographer: Michael Nagle/Bloomberg

Wall Street began Monday with cautious but clear gains, spurred by renewed hope for global trade deals and the onset of a pivotal earnings week dominated by major tech names. S&P 500 futures climbed roughly 0.26%, Nasdaq 100 futures rose about 0.28%, and Dow futures edged up by approximately 0.25%, nudging markets closer to recent record highs.

Investor sentiment appears buoyant despite growing tariff tensions, notably President Trump’s proposed duties of 20–50% targeting Canada, Japan, Brazil, Mexico, and the European Union. U.S. Commerce Secretary Howard Lutnick urged calm, expressing confidence that negotiations with the EU were ongoing and constructive.

Optimism is rooted in more than just rhetoric. Earnings season has kicked off on a high note about 81.4% of the roughly 59 S&P 500 companies reporting so far have exceeded analysts’ expectations. Verizon jumped more than 4% after raising its full‑year profit guidance, while Domino’s Pizza surged over 5% following strong same‑store sales in the U.S. These early successes have helped offset caution around Netflix, which fell despite beating earnings, signaling a market that values consistent growth over one-off surprises.

All eyes now turn to the “Magnificent Seven,” with earnings from tech behemoths like Alphabet and Tesla expected this week. Their performance could set the tone not only for tech stocks but for broader sentiment heading into the second half of the year. In premarket moves, both names were trading higher, reinforcing the trend of cautious optimism.

The regulatory environment is also evolving: optimism around trade is supplemented by fresh momentum in fintech and crypto. The passage of the GENIUS Act creating a legal framework for stablecoins helped boost Ether-linked equities by roughly 5-6%.

Despite looming economic uncertainty, the tone of the markets remains measured. With key economic data such as jobless claims and regional business activity reports on the horizon, investors are positioning for a nuanced week that balances growth concerns with momentum from corporate performance. Futures markets currently give a 60% probability to a Fed rate cut by September, suggesting that monetary loosening remains on the table.