S&P 500, Nasdaq on track for record closing highs as focus turns to earnings
SPY•Wall Street’s major indexes rose Tuesday, with the S&P 500 up 0.71% and Nasdaq up 0.64%, putting both on track for record closing highs. Third-quarter earnings season is due to begin next week; analysts expect S&P 500 earnings to grow 30.6% year over year.
1. Indexes advance
The Dow rose 0.51%, the S&P 500 gained 0.71% and the Nasdaq Composite added 0.64%. All three indexes advanced as crude prices steadied and Treasury yields eased, while investors turned their attention to the approaching third-quarter reporting season.
2. Trade and rate outlook
The U.S. trade deficit widened 13.7% as imports reached a record high. Imports rose 4.3% from the previous month and 28.4% from a year earlier. Markets priced in a 21.6% probability of a second consecutive Federal Reserve rate hike this month, down from 50.9% a week earlier.
3. Earnings and company moves
Analysts expect aggregate S&P 500 earnings to grow 30.6% in the July-to-September quarter, including projected growth of 114.7% for energy and 66.5% for technology. Marvell gained 6.5% after raising its 2028 revenue forecast, AMD rose 3.6% after CEO Lisa Su said it plans to substantially increase chip supply in 2027, and Constellation Energy jumped 13.4% after Alphabet entered a 3,590-megawatt power deal with the company.
