Alphabet and Amazon drive new records while investors look past trade tensions to earnings growth

On Monday, strong earnings from US tech giants helped push the S&P 500 above the 6,300 mark for the first time, offering markets a signal of resilience despite rising global tariff risks.
The index gained 0.14 percent to close at 6,305.60 on Monday, while the Nasdaq Composite rose 0.38 percent to a record 20,974.17, as reported by CNBC.
The Dow Jones Industrial Average edged down 19.12 points to 44,323.07.
Alphabet rose 2.7 percent ahead of its quarterly earnings report, while Amazon climbed 1.43 percent and Apple gained 0.62 percent.
Meta Platforms also contributed to the upward momentum.
These large-cap tech stocks, part of the “Magnificent Seven,” are expected to drive second-quarter earnings growth of 14 percent, compared to just 3.4 percent for the rest of the S&P 500, according to FactSet’s John Butters.
As per Reuters, analysts forecast a 6.7 percent year-over-year increase in second-quarter earnings for S&P 500 companies, with Big Tech delivering much of the upside.
More than 85 percent of companies that have reported so far have topped expectations, according to FactSet data.
Bank of America estimated a 5 percent annual increase in earnings after the first week of results.
Verizon added over 4 percent after posting better-than-expected quarterly results and raising its annual profit outlook.
According to BNN Bloomberg, Block climbed 7.6 percent after being added to the S&P 500 index, replacing Hess.
Cleveland-Cliffs advanced 12.4 percent after posting a smaller-than-expected loss and record steel shipments.
CEO Lourenco Goncalves said the company is beginning to see “the positive impact that tariffs have on domestic manufacturing.”
The positive tone from early results stands in contrast to concerns over international trade.
US Commerce Secretary Howard Lutnick reiterated over the weekend that August 1 is the “hard deadline” for countries to begin paying tariffs, though talks could continue beyond that date.
As reported by Reuters, Lutnick said he is confident the US could reach a deal with the European Union, while Trump’s administration continues to threaten tariffs of 20 percent to 50 percent on goods from Mexico, Canada, Japan, Brazil, and the EU.
Despite the trade tensions, investor sentiment remained focused on earnings.
Tom Hainlin, national investment strategist at US Bank Wealth Management, told Reuters that companies “in general, met or beat guidance from the prior quarter,” with no signs yet of declines in corporate profits or consumer spending.
Sam Stovall, chief investment strategist at CFRA Research, said low expectations have set the stage for positive market reactions: “Rarely do you injure yourself falling out of a basement window.”
He added that historical patterns suggest the S&P 500 could gain another 10 percent after rebounding from a 20 percent decline, potentially reaching 6,600 — about 4.7 percent above Monday’s close.
Some indicators suggest that US consumer demand remains steady.
A BofA Global Research note cited by BNN Bloomberg pointed to encouraging retail sales data and stronger travel demand from United Airlines as signals of consumer health.
In Canada, the S&P/TSX Composite Index closed marginally higher, up 2.99 points to 27,317.00, as reported by BNN Bloomberg.
The Canadian dollar strengthened to 73.03 cents US, up from 72.89 cents US on Friday.
Meanwhile, crude oil for September delivery fell 10 cents US to US$65.95 per barrel, and gold for August delivery rose US$48.10 to US$3,406.40 an ounce.
Bond yields eased in the US, with the 10-year Treasury yield falling to 4.38 percent from 4.44 percent. Overseas, political shifts in Japan weighed on markets after Prime Minister Shigeru Ishiba’s coalition lost its majority in both houses of parliament.