U.S. markets are off to a positive start for the trading week, with the Dow Jones Industrial Average up 140 points in early action on July 21 and both the S&P 500 and Nasdaq indices at record highs.
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Stocks are climbing higher as investors digest the latest developments in global trade negotiations and await the start of big tech earnings, with companies such as Tesla (TSLA) and Google parent Alphabet (GOOGL) scheduled to release their second-quarter results in coming days.
The benchmark S&P 500 is up 0.5%, and the technology-laden Nasdaq Composite index is up 0.7% to begin the week. Both indices are at all-time intraday highs. As has been the case over the past few weeks, mega-cap technology stocks continue to lead the market rally, with GOOGL stock up more than 2%, while others such as Meta Platforms (META) and Apple (AAPL) have advanced more than 1%.
Trade and Central Bank Developments
Also continuing to drive the market are trade developments, specifically those related to tariffs. Over the weekend, U.S. Commerce Secretary Howard Lutnick said that Aug. 1 is a “hard deadline” for countries to start paying tariffs, though he also added that “nothing stops countries from talking to us after Aug. 1.”
Also in the news are ongoing developments related to the U.S. Federal Reserve Chair Jerome Powell and President Donald Trump’s threats to fire him before his term ends in May 2026. Media reports claim that members of Trump’s cabinet intervened to convince President Trump not to fire Powell.
Wall Street is coming off a winning week for all three of the main indices. This comes as earnings season is off to a strong start, with 85% of companies that have reported Q2 results beating Wall Street expectations.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY) has a consensus Moderate Buy rating among 504 Wall Street analysts. That rating is based on 427 Buy, 70 Hold, and six Sell recommendations issued in the last three months. The average SPY price target of $684.67 implies 8.49% upside from current levels.
