Gold prices bounce off 3-week lows; demand likely longer term
Investing.com -- U.S. stocks ended higher on Friday, capping a strong week as investors responded positively to corporate earnings and recent trade headlines.
The S&P 500 rose 0.40% to close at a record 6,388.64, marking its 14th all-time high of the year. The Nasdaq Composite added 0.24% to end at 21,108.32, also a record. Both benchmarks notched fresh intraday highs during the session.
The Dow Jones Industrial Average gained 208.01 points, or 0.47%, to finish at 44,901.92, coming within 0.25% of its record close from December 4.
For the week, all three major indexes posted gains. The Dow climbed about 1.3%, while the Nasdaq rose 1% and the S&P 500 added 1.5%.
Looking ahead to this week, markets face a packed calendar that could test investor confidence.
A key focus is the August 1 deadline set by President Donald Trump, when higher tariffs are scheduled to take effect on a wide range of U.S. trading partners unless new agreements are reached. The potential for escalated trade tensions could add volatility to an otherwise steady market.
Also on deck are the Federal Reserve’s interest rate decision, the July jobs report, and a wave of earnings from some of the market’s largest companies—all of which could influence sentiment in the days ahead.
“August 1 could mean higher tariffs on nearly 60 U.S. trading partners including the EU, as a bloc, the biggest. A rise from the current ~16% US weighted average tariff to perhaps as much as ~21% is a risk,” UBS economists commented in a note.
As for the upcoming employment data, the team expects a “soggy” report, though they believe the underlying details will likely be no worse than those seen in June.
UBS forecasts a 95,000 increase in nonfarm payrolls for the month, with the unemployment rate ticking back up to 4.2%.
However, the economists added that unexpected strength in the data “could upend September rate cut calls.”
4 of the Magnificent 7 to report earnings this week
Investors are bracing for a busy stretch of earnings this week, with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META) Platforms—four of the so-called "Magnificent Seven"—set to report. Given their massive market caps, these companies carry significant weight in the major indexes.
Just as a negative outcome on tariffs could shake the markets, so too could weaker-than-expected earnings from these tech giants.
“Everything can go right for this astoundingly resilient market,” Evercore ISI strategists said, “but as our Investor poll last Friday showed a likelihood that punitive tariffs on at least one country could rattle investors, as could an adverse price reaction from Mag 7 reporters.”
So far, around 30% of S&P 500 companies have released second-quarter results. Earnings are on pace to grow 7.7% from a year earlier, according to LSEG IBES, an improvement from the 5.8% gain projected at the start of July.
Apart from the biggest players, Boeing (NYSE:BA), Spotify (NYSE:SPOT), Booking (NASDAQ:BKNG), Visa (NYSE:V), ARM Holdings (LON:ARM), and Qualcomm (NASDAQ:QCOM), among others, are also due to report this week.
What analysts are saying about U.S. stocks
Morgan Stanley (NYSE:MS):"The rolling recovery is underway, and we lean more toward our 12-month bull case (7200). Drivers are positive operating leverage, AI adoption, dollar weakness, cash tax savings, easy growth comparisons, pent-up demand and Fed cuts. Industrials remains our top sector pick."
RBC Capital Markets: "Even though the S&P 500 has crept higher over the past week, the ability to manage through tariffs has not been uniform. Additionally, discussion of 2026 has been fairly light so far. That makes sense to us given that we are only midway through 2025, but it also poses a risk to the path of stock prices if company outlooks for 2026 don’t end up being as rosy as investors have been anticipating. We continue to be ready for choppy conditions in the stock market in the back half of 2025."
Evercore ISI: "FOMO and Speculation does not mean that stocks move in a straight line higher, even as it does increase the probability that the long term destination is higher. A market trading at nearly 25x and where complacency is reflected by plunging index volatility faces a barrage of events in the week ahead."