The S&P 500 scaled another record high early on Friday, extending weekly gains as earnings optimism continued to buoy investor sentiment.
The benchmark index rose 0.2%, while the Nasdaq Composite advanced 0.4% to notch fresh highs.
The Dow Jones Industrial Average underperformed, slipping 59 points, or 0.2%, dragged by a decline in American Express shares.
Markets react to Q2 earnings
American Express fell 3% after posting quarterly results, weighing on the 30-stock Dow index.
Meanwhile, Netflix shares slid more than 4% despite beating both earnings and revenue estimates and raising its full-year revenue guidance.
3M was little changed after its second-quarter earnings beat expectations.
The broader gains on Friday built on Thursday’s rally, when the S&P 500 closed 0.5% higher at a then-record, with the Nasdaq gaining 0.7%.
The Dow added 0.5% during that session as well.
Wall Street is on track for a positive week overall. Through Thursday’s close, the S&P 500 was up 0.6%, the Dow had risen 0.3%, and the Nasdaq was set to lead with a 1.5% gain.
Robust earnings from several blue-chip companies, including JPMorgan Chase, Goldman Sachs, PepsiCo, and United Airlines, have supported sentiment throughout the week.
Stronger-than-expected economic data released Thursday also helped boost major indexes, reinforcing the resilience of the US economy.
Waller signals July rate cut is on the table
Market participants are also closely watching developments at the Federal Reserve.
Fed Governor Christopher Waller has reiterated his support for a rate cut at the central bank’s upcoming policy meeting on July 29–30, arguing that the current interest rate range of 4.25%–4.5% is too restrictive.
“I believe we should cut the policy rate at our meeting in two weeks,” Waller said during a speech in New York on Thursday night, suggesting that the Fed’s policy rate should be closer to 3%, roughly 125 to 150 basis points lower than the current level.
He maintained that the recent surge in import taxes is likely a temporary event that should not prevent rate reductions.
In an interview with Bloomberg on Friday, Waller emphasised that the private sector is not performing as strongly as it appears on the surface.
He suggested that if inflation remains contained, the Fed could consider additional rate cuts in the second half of the year.
Waller also acknowledged speculation about his future, confirming that he would accept the role of Fed Chair if offered by President Donald Trump, though he stressed that he has not been contacted.
Jerome Powell’s term as Fed Chair is set to expire in May 2026.
His comments come as the Fed faces mounting pressure to adjust its monetary policy stance in light of softening inflation and a potentially slowing economy.
Waller’s remarks mark one of the more forceful calls from within the central bank to begin easing soon, and he hinted he might dissent at the upcoming meeting should the majority choose to hold rates steady.
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