Stocks climbed again Friday morning after the S&P 500 closed at a record high Thursday, with Wall Street riding a wave of strong earnings and improving economic sentiment.
The market opened higher as futures pointed to continued strength across all three major indexes. The S&P 500 and Nasdaq are on pace for new weekly gains, driven by upbeat quarterly results from companies like PepsiCo, Goldman Sachs, and Netflix.
Major indexes rise as futures point to strong open
Wall Street saw modest gains early Friday, continuing momentum from Thursday’s rally:
- S&P 500: +0.54% to 6,297.36
- Dow Jones Industrial Average: +0.52% to 44,484.49
- Nasdaq Composite: +0.75% to 20,885.65
Pre-market futures also indicated a bullish start:
- S&P 500 Futures: +0.13%
- Nasdaq-100 Futures: +0.13%
- Dow Futures: +14 points
Corporate earnings boost investor confidence
Earnings reports continue to fuel optimism:
- American Express and 3M are reporting Friday.
- Netflix beat Q2 earnings expectations but shares dipped 1% in extended trading.
- Chevron jumped 3% after winning a mediation dispute with Exxon over Guyana oil rights.
- Hess, which Chevron is acquiring, rose 7% premarket.
This week’s earnings from PepsiCo, United Airlines, JPMorgan, and Goldman Sachs all exceeded forecasts, reinforcing investor confidence in corporate resilience.
What’s driving the rally?
Analysts cite a mix of strong economic indicators and resilient earnings as catalysts:
- Growth stocks and tech continue to lead the market.
- Economic data suggests moderate cooling without signs of a hard landing.
- Federal Reserve sentiment remains cautiously dovish, adding support.
“We would stick with the underlying trend, which still seems positive in our world,” said Keith Lerner of Truist, who added that growth sectors continue to fuel gains.
Investor sentiment and global perspective
Despite U.S. market strength, some investors are looking globally:
- Tim Seymour of Seymour Asset Management said U.S. exceptionalism may have “peaked.”
- He noted that international markets are offering compelling growth opportunities.
- The U.S. dollar’s slide in 2025 may reverse as economic resilience shifts global capital flows.
Stocks to watch today
- Netflix (NFLX): Down 1% despite beating earnings and raising guidance
- Interactive Brokers: +4% after strong Q2 performance
- Norfolk Southern: +4% after reports of takeover talks with Union Pacific
- Bank OZK: +2% after beating revenue and earnings expectations
What’s next for markets?
With earnings season in full swing and key inflation data due next week, investors will be watching for signs that the Fed might pivot on rates later in the year. Meanwhile, market watchers say momentum is likely to continue if earnings surprises remain positive.
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