Megacaps Propel S&P 500 and Nasdaq to Record Highs Amid Earnings Surge

The S&P 500 and Nasdaq reached new highs, lifted by Alphabet and other major companies ahead of looming earnings reports. Investors are optimistic about trade deals reducing tariff impacts, while Federal Reserve rate decisions and economic data are closely monitored. The market showed gains despite mixed economic signals.

The stock markets soared as both the S&P 500 and Nasdaq achieved record closures on Monday, buoyed by gains from Alphabet and other large-cap companies ahead of major earnings reports due this week. Investors are optimistic that trade deals may mitigate the economic impacts of the Trump administration's tariffs.

Google's parent company, Alphabet, rallied ahead of its earnings report set for Wednesday, alongside Tesla as they lead off the so-called 'Magnificent Seven'. Apple and Amazon also contributed to the S&P 500's rise, while Verizon saw a surge following an increase in its annual profit forecast.

Key analysts predicted a 6.7% rise in second-quarter earnings for S&P 500 companies, driven largely by Big Tech. Despite potential trade conflicts, the market remains up 8% year-to-date, with investors closely watching tariff developments and anticipated economic reports, including jobless claims and business activity data.

(With inputs from agencies.)