Major Indexes Close at Record Highs on Strong Earnings and Economic Data
The S&P 500 and Nasdaq Composite both closed at fresh record highs on Thursday, July 17, 2025, as investors cheered strong corporate earnings and better-than-expected economic data. The Dow Jones Industrial Average also posted solid gains, rising 230 points to finish at 44,724.
The S&P 500 climbed 0.2% to set a new all-time high, while the tech-heavy Nasdaq Composite added 0.2%, marking its fourth consecutive record close.
“Today’s market recap shows investors focusing on fundamentals rather than political noise,” said market strategist Emma Chen. “The combination of solid retail sales data and encouraging earnings reports is providing a strong foundation for this rally.”
Economic Data Points to Resilient Consumer Spending
Thursday’s market gains were supported by fresh economic data showing unexpected strength in consumer spending. Retail sales for June rose 0.6% from May, significantly beating economists’ expectations of 0.2% growth. Year-over-year, retail sales increased by 3.5%, suggesting American consumers remain resilient despite higher interest rates.
The labor market also showed continued strength, with initial jobless claims falling to 221,000 for the week ending July 12, a decrease of 7,000 from the previous week’s revised level.
“The markets today are responding positively to these economic indicators,” noted economist David Park. “Strong consumer spending typically accounts for about 70% of U.S. economic activity, so these numbers are particularly encouraging for the broader growth outlook.”
Earnings Season Gains Momentum with Strong Results
The second-quarter earnings season is off to an impressive start, with over 45 S&P 500 companies reporting thus far and 87% exceeding analyst expectations.
PepsiCo (PEP) shares surged after the beverage and snack food giant affirmed its outlook and posted better-than-expected quarterly results. The company reported adjusted earnings per share of $2.12 on sales of $22.73 billion, beating analyst estimates of $2.06 and $22.35 billion, respectively.
Taiwan Semiconductor Manufacturing Co. (TSM) also impressed investors by lifting its outlook for revenue growth, reinforcing confidence in artificial intelligence spending. The company reported second-quarter earnings per share of 15.36 New Taiwan dollars on revenue that rose 39% year-over-year to NT$933.79 billion, exceeding analyst expectations.
GE Aerospace (GE) traded higher after posting better-than-expected earnings, while Elevance Health (ELV) dropped 16% after missing earnings estimates despite reporting revenue above expectations.
Tech Sector Continues to Lead Market Rally
Technology stocks remained at the forefront of the market’s advance, with the sector up 1.29% for the week, making it the best performer among the 11 S&P 500 sectors.
Microsoft (MSFT) reached a new peak since its IPO in March 1986, while Oracle (ORCL) hit record levels since going public in 1986.
“The tech sector’s leadership continues to be a defining characteristic of this market,” said tech analyst Sarah Johnson. “While valuations are stretched by historical standards, strong earnings and revenue growth are providing justification for these levels.”
Upcoming Earnings to Watch
Investors are now turning their attention to several high-profile earnings reports scheduled for after Thursday’s market close. Netflix (NFLX) is expected to report quarterly earnings of $7.06 per share on revenue of $11.05 billion, with expectations building around its second-half content slate.
Other notable companies reporting after the bell include Interactive Brokers Group (IBKR), Western Alliance (WAL), and Bank OZK (OZK).
Market Concerns: Tariffs and Fed Policy
Despite the positive market performance, investors continue to monitor several potential headwinds. Alcoa Corp., the largest US aluminum producer, reported that tariffs on imports from Canada cost it $115 million in the second quarter, highlighting the impact of President Trump’s trade policies on American businesses.
The dollar strengthened by 0.4% on Thursday, resuming its month-to-date climb as expectations for interest rate cuts in 2025 continue to fade.
Looking Ahead: Key Events to Watch
As markets continue to digest earnings reports, investors will be closely watching additional economic data releases in the coming days. The energy sector, currently down 3.35% for the week, remains the worst-performing S&P 500 sector and could use positive catalysts to reverse its decline.
“Today’s market recap demonstrates that fundamentals are driving this rally,” concluded market strategist Thomas Williams. “With earnings season gaining momentum and economic data surprising to the upside, the path of least resistance for stocks appears to be higher, despite ongoing concerns about trade policy and interest rates.”
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.