US Stock Rally Wavers After Series Of All-Time Highs: Markets Wrap

Wall Street is ending the week on a quiet note, with stocks hovering near their all-time highs as traders digest the latest batch of results from Corporate America. After an uneventful meeting between Donald Trump and Jerome Powell, the dollar rose alongside bond yields.

A furious equity rally from April’s tariff-induced meltdown has abated over the past few sessions, with the S&P 500 showing only small gains. The record-breaking run has stoked concerns about inflated share prices that saw a revival of the meme-stock mania, which makes it hard for many traders to bet against the trend.    

“The pace of earnings so far this month has been positive, economic data has been hanging in there, and we’re even starting to get some sense of clarity on tariffs, so you can’t fault investors for being optimistic,” said Bespoke Investment Group strategists.

With about a third of S&P 500 members reporting results by Thursday’s close, this earnings cycle is turning out to be much more robust than expected. Around 83% of companies have exceeded analysts’ profit estimates, according to data compiled by Bloomberg Intelligence. That’s on track for the highest share of beats since the second quarter of 2021.

Orders placed with US factories for business equipment unexpectedly declined in June, suggesting companies remained cautious about capital spending due to trade and fiscal policy uncertainty.

The data this morning reinforces the positive signs coming out of the economy and removes some of the concerns that macro issues will overwhelm positive fundamentals, according to Chris Zaccarelli at Northlight Asset Management.

“We are seeing some divergence in earnings, but for the most part companies are beating expectations and keeping the stock rally going,” he said. “As long as trade policy and tariff headwinds are minor, the market can keep moving higher.”

The risk of a bubble in stock markets is rising as monetary policy loosens alongside an easing in financial regulation, according to Bank of America Corp. strategists led by Michael Hartnett.

At the same time, policymakers are considering regulatory changes to boost the share of retail investors in the US. “Bigger retail, bigger liquidity, bigger volatility, bigger bubble,” Hartnett wrote.

• Intel Corp.’s Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker’s technological edge.

• Paramount Global’s merger with Skydance Media was approved by the US Federal Communications Commission.

• Pinnacle Financial Partners Inc. agreed to acquire Synovus Financial Corp. in an all-stock transaction valued at $8.6 billion, combining two sizable players in the US Southeastern market ahead of a potential wave of banking M&A.

• Charter Communications Inc. reported it lost more internet customers than expected during the second quarter amid increased pressure from mobile companies’ 5G and fiber home internet offerings.

• Fuzzy Ugg boots and chunky Hoka running shoes saw big sales gains last quarter, bolstering financial results for parent company Deckers Outdoor Corp.

• Bristol-Myers Squibb Co.’s chief medical officer is stepping down from his role after six years at the company, a surprise move as the drugmaker races to find its next hit to reverse its declining fortunes.

• Eli Lilly & Co. won the backing of European Union regulators for its Alzheimer’s disease drug Kisunla in a specific group of patients, potentially paving the way for it to become the second drug in the region to slow the most common cause of dementia in the elderly.

• Roche Holding AG’s gene therapy Elevidys failed to get the backing of European regulators, a blow to the Swiss drugmaker and to Sarepta Therapeutics Inc., the embattled US biotech that developed the treatment.

• Newmont Corp. has made progress getting its costs under control, helping the world’s top gold miner beat expectations on earnings at a time when a rally for the precious metal is underpinning the industry.

• Lyft Inc. is partnering with Benteler Group, an Austria-based manufacturer, to deploy autonomous shuttles in the US in late 2026, trying to catch up with rival Uber Technologies Inc. in offering driverless rides.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.1% as of 9:30 a.m. New York time

• The Nasdaq 100 was little changed

• The Dow Jones Industrial Average rose 0.2%

• The Stoxx Europe 600 fell 0.6%

• The MSCI World Index fell 0.2%

Currencies

• The Bloomberg Dollar Spot Index rose 0.3%

• The euro fell 0.2% to $1.1721

• The British pound fell 0.6% to $1.3433

• The Japanese yen fell 0.5% to 147.80 per dollar

Cryptocurrencies

• Bitcoin fell 2.3% to $116,020.62

• Ether fell 1% to $3,699.54

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.42%

• Germany’s 10-year yield advanced three basis points to 2.73%

• Britain’s 10-year yield advanced four basis points to 4.66%

Commodities

• West Texas Intermediate crude was little changed

• Spot gold fell 0.7% to $3,343.95 an ounce