Source: Sharecast
The Dow surged 1.1% to 45,010.29 – its highest finish since December – while the S&P 500 and Nasdaq rose 0.8% and 0.6% to new records of 6,358.91 and 21,020.02 respectively.
Stock markets across the globe were putting in decent gains after Donald Trump announced that he had agreed a "massive" trade deal with Tokyo that will see Japanese imports into the US slapped with a 15% tariff – not as steep as the 25% rate he threatened earlier this month.
Trump also set a 19% tariff on imports from the Philippines, and claimed that his administration was meeting with European officials in an effort to come to an agreement with the European Union.
Nevertheless, Chris Beauchamp, chief market analyst at IG, said that earnings from blue chip tech stocks Alphabet and Tesla due out after the close were "poised to steal the limelight from the trade deal euphoria".
Beauchamp said: "So far the season has delivered enough good news to keep the rally going – rate cut hopes, trade deals and earnings seem to provide the recipe for a continuation of the post-April rebound.”
On the macro front, US mortgage applications ticked up 0.8% in the week ended 18 July, according to the Mortgage Bankers Association, even as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.84% from 6.82%. Applications to refinance a home loan fell 3% week-on-week, while applications for a mortgage to purchase a home rose 3%.
Meanwhile, existing home sales fell by 2.7% in June to 3.93m, missing the 4.01m consensus forecast, as activity contracted following a 1% increase in May.
Market movers
General Dynamics rose after reporting stronger-than-expected results for the second quarter of 2025, driven by robust demand in its marine systems and aerospace businesses. The US defence and aerospace group posted earnings of $3.74 per share, up 14.7% from a year earlier and ahead of analyst forecasts.
AT&T impressed with better-than-expected second-quarter results, buoyed by strong wireless subscriber growth and rising service revenues. The telecom giant also outlined how it would channel billions in anticipated tax savings into fibre infrastructure and pension funding.
Also higher was ratings and analytics firm Moody’s Corporation after a rise in second-quarter earnings, underpinned by strong growth in its analytics division and resilient performance from its credit ratings business.
Shares in Kohl's and Opendoor were pulling back after surging over recent days, with analysts labelling them as the next potential 'meme stock'. Krispy Kreme and GoPro have also seen some dramatic moves this week.
"There are no fundamental drivers for the move. Instead, the massive stock price increases are driven by two things: promotion across social media and large short positions that meme stock heroes fight against," said Kathleen Brooks, research director at XTB.
Google parent company Alphabet and electric carmaker Tesla were flat ahead of their quarterly earnings due out after the close.
Dow Jones - Risers
Merck & Co. Inc. (MRK) $83.98 2.90%
Unitedhealth Group Inc. (UNH) $292.51 2.59%
Caterpillar Inc. (CAT) $427.59 2.49%
Goldman Sachs Group Inc. (GS) $717.52 2.44%
Dow Chemical Co. (DOW) $30.37 2.39%
Boeing Co. (BA) $233.88 2.36%
Chevron Corp. (CVX) $153.12 2.05%
JP Morgan Chase & Co. (JPM) $296.76 1.83%
Nike Inc. (NKE) $76.75 1.80%
Walt Disney Co. (DIS) $122.89 1.55%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $264.54 -0.76%
Coca-Cola Co. (KO) $69.16 -0.72%
McDonald's Corp. (MCD) $297.95 -0.35%
Verizon Communications Inc. (VZ) $42.84 -0.28%
3M Co. (MMM) $150.79 -0.25%
Walmart Inc. (WMT) $95.68 -0.18%
Apple Inc. (AAPL) $214.15 -0.12%
Walgreens Boots Alliance, Inc. (WBA) $11.53 -0.09%
Procter & Gamble Co. (PG) $158.26 -0.03%
S&P 500 - Risers
Lamb Weston Holdings, Inc. (LW) $57.19 16.31%
TE Connectivity Ltd (TEL) $201.73 11.95%
Thermo Fisher Scientific Inc. (TMO) $466.71 9.14%
Helmerich & Payne Inc. (HP) $17.03 7.09%
Travel + Leisure Co (TNL) $61.87 6.95%
Gen Dynamics Corp. (GD) $316.80 6.50%
Centene Corp. (CNC) $29.42 5.49%
National Oilwell Varco Inc. (NOV) $13.70 5.30%
Elevance Health Inc. (ELV) $296.60 5.28%
Align Technology Inc. (ALGN) $204.07 5.16%
S&P 500 - Fallers
Kohls Corp. (KSS) $12.30 -14.23%
Fiserv Inc. (FI) $143.00 -13.85%
Texas Instruments Inc (TXN) $186.25 -13.34%
Microchip Technology Inc. (MCHP) $70.25 -6.66%
NextEra Energy Inc. (NEE) $72.82 -6.09%
Albemarle Corp. (ALB) $78.84 -5.35%
Quest Diagnostics (DGX) $170.21 -4.35%
D. R. Horton Inc. (DHI) $148.39 -3.47%
Analog Devices Inc. (ADI) $228.08 -3.15%
Chubb Corp. (CB) $270.03 -3.08%
Nasdaq 100 - Risers
Align Technology Inc. (ALGN) $204.07 5.16%
Seagate Technology Plc (STX) $152.76 4.21%
Western Digital Corp. (WDC) $69.32 3.37%
Gilead Sciences Inc. (GILD) $113.56 3.08%
Henry Schein Inc. (HSIC) $74.21 2.78%
DENTSPLY Sirona Inc. (XRAY) $16.85 2.68%
Incyte Corp. (INCY) $70.69 2.60%
PACCAR Inc. (PCAR) $101.11 2.57%
Illumina Inc. (ILMN) $104.64 2.56%
Biogen Inc (BIIB) $130.98 2.45%
Nasdaq 100 - Fallers
Fiserv Inc. (FI) $143.00 -13.85%
Texas Instruments Inc (TXN) $186.25 -13.34%
Microchip Technology Inc. (MCHP) $70.25 -6.66%
Qvc Group Inc Series A (QVCGA) $3.24 -4.42%
Analog Devices Inc. (ADI) $228.08 -3.15%
Electronic Arts Inc. (EA) $153.70 -2.11%
Intuitive Surgical Inc. (ISRG) $501.95 -1.77%
J.B. Hunt Transport Services Inc. (JBHT) $149.80 -1.40%
Netflix Inc. (NFLX) $1,176.78 -1.12%
Starbucks Corp. (SBUX) $95.92 -1.05%