Stock futures are little changed after S&P 500, Nasdaq score another record close: Live updates

The S&P 500 and Nasdaq Composite continued their record-setting rally, with the S&P 500 marking its 13th record close of 2025, driven by a strong earnings season where approximately 83% of reporting S&P 500 companies beat expectations, alongside recent U.S. trade deals. All major averages are set for weekly gains as investors anticipate the Federal Reserve to hold interest rates steady next week, while President Trump has softened his stance on Federal Reserve Chairman Jerome Powell, indicating he will not fire him, easing prior market concerns.

Analysis

US equity markets are exhibiting significant strength, with the S&P 500 and Nasdaq Composite repeatedly setting new all-time highs, driven by a confluence of positive catalysts. The S&P 500 has now logged 13 record closes in 2025, four of which occurred this week, pushing the index above the 6,300 level. This momentum is fundamentally supported by a robust earnings season, where nearly 83% of the 155 S&P 500 companies that have reported so far have surpassed Wall Street's expectations, exemplified by Alphabet's strong performance. Concurrently, positive developments in trade policy, including a new deal with Japan and a framework agreement with Indonesia, are bolstering investor sentiment ahead of a key August 1 tariff deadline. The macroeconomic outlook is further stabilized by expectations that the Federal Reserve will maintain its current interest rate target of 4.25% to 4.5% at its upcoming meeting. A notable reduction in political risk has also occurred, as President Trump has publicly stated he does not intend to fire Fed Chairman Jerome Powell, removing a key source of market anxiety. However, some strategists caution that for the rally to be sustained, market participation must broaden beyond its current concentration.

Key Decisions for Investors

• Given the strong earnings momentum and positive trade developments, investors may consider maintaining or increasing exposure to broad market indices, but should monitor for a broadening of market participation as a key indicator of the rally's health.
• Pay close attention to forthcoming trade announcements ahead of the August 1 tariff deadline and the Federal Reserve's policy statement next week, as these are the primary near-term catalysts for market direction.
• The reduced political tail risk, following statements that the Federal Reserve Chairman's position is secure, warrants a potential re-evaluation of risk premiums previously assigned to political uncertainty.