The S&P 500 experienced an upward movement on Friday, concluding a successful week driven by robust earnings reports and recent trade advancements. The broad market index experienced an increase of 0.40%, achieving its 14th record close of the year at 6,388.64. The Nasdaq Composite experienced an increase of 0.24%, concluding at 21,108.32, marking its 15th record close in 2025. Both indexes reached unprecedented intraday highs during the session. The Dow Jones Industrial Average experienced an increase of 208.01 points, reflecting a rise of 0.47%, ultimately closing at 44,901.92. The 30-stock index concluded the trading session approximately 0.25% below its record close of 45,014.04 on December 4.

The three principal indices concluded the week on a positive note. The 30-stock Dow experienced an approximate increase of 1.3% during the period, whereas the tech-centric Nasdaq saw a rise of 1%, and the broader S&P 500 index recorded a gain of about 1.5%. Friday represented the fifth consecutive day of record closings for the S&P 500, culminating in the index surpassing the 6,300 mark for the first time on Monday. This week, the Nasdaq has achieved four record closes, surpassing the 21,000 mark on Wednesday.

The recent ascent to all-time highs over the past week can be attributed to a robust earnings season thus far, highlighted by Alphabet’s better-than-expected earnings report. Verizon’s performance exceeded market expectations, leading to a notable increase in its shares. For the week thus far, Alphabet has experienced a 4% increase, while Verizon has seen a 5% rise. Over 82% of the 169 S&P 500 companies that have reported thus far have surpassed Wall Street’s expectations, according to data from FactSet. “The bull market lives on, supported largely by favorable fundamentals,” stated Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “Inflation is stable, interest rates are range-bound and earnings are trending higher, and that presents a favorable backdrop for stocks to trend higher.” We continue to anticipate that a risk-on bias will remain in place as we progress through this earnings season.

In addition to earnings, recent agreements between the U.S. and its trading partners have contributed to the market reaching new peaks. Earlier this week, President Donald Trump announced a “massive” trade agreement with Japan, which includes 15% “reciprocal” tariffs. This week, the president announced that the United States and Indonesia have reached an agreement on the framework of a trade accord. Trump indicated on Friday his anticipation of additional agreements being finalized prior to the impending Aug. 1 tariff deadline. An agreement between the U.S. and the European Union appears to be on the horizon, as European Commission President Ursula von der Leyen indicated on X later Friday that she and Trump have reached a consensus to convene in Scotland on Sunday to deliberate on trade matters.

“Tariffs remain an item of uncertainty, and commentary from companies still reflects this ongoing uncertainty,” Sandven continued. “One must consider the current discourse surrounding tariffs and the geopolitical complexities, particularly those involving Russia-Ukraine, Israel-Iran, and similar situations.” Throughout this period, the equity market has exhibited an upward trajectory. In our assessment, the situation ultimately reflects robust fundamentals, particularly the observation that inflation seems to be well-managed. Market participants are preparing for a particularly active week in the earnings cycle, with over 150 companies from the S&P 500 set to release their quarterly financial results. That encompasses entities within the “Magnificent Seven,” including Meta Platforms and Apple. Next week marks the occasion of the Federal Reserve’s upcoming meeting. It is anticipated that policymakers will maintain interest rates within the existing target range of 4.25% to 4.5%.