U.S. stocks started the week on strong footing as the S&P 500 and Nasdaq reached fresh record highs, bolstered by robust second-quarter earnings and growing optimism around the economic outlook. The S&P 500 traded just below its all-time closing high, while the Nasdaq continued to outperform, fueled by notable gains in large-cap technology and semiconductor stocks.

Investors are growing more confident as corporate performance signals resilience across key sectors, particularly technology, industrials, and financials. Cooling inflation and improving global trade conditions have also contributed to a cautiously optimistic market mood. Year-to-date, the S&P 500 has delivered an impressive return of 18.7%, and the Nasdaq has surged by 27.5% as enthusiasm for artificial intelligence and chip manufacturers continues to draw in both institutional and retail investors.

This week, attention is focused on major earnings reports from tech giants such as Apple, Amazon, Meta, and Microsoft. Their results are highly anticipated and considered key drivers for broader market direction. Meanwhile, the Dow Jones Industrial Average has shown steadier performance, lagging behind the more tech-heavy indices but still maintaining gains, particularly with strong showings from leading companies like UnitedHealth and Boeing.

Looking ahead, the market is closely watching the Federal Reserve’s upcoming meeting. While earnings have provided strong momentum, any remarks or hints about future interest rate policy could introduce additional volatility. The Russell 2000—home to smaller, more domestically focused companies—has underperformed compared to large-cap peers but could benefit if the Fed signals a dovish stance or reiterates confidence in a soft economic landing.

With big tech earnings and a key Fed meeting on the horizon, investors should remain vigilant as market sentiment could shift quickly in response to new data and guidance. For now, optimism continues to drive U.S. equities near historic highs.