Stocks in the United States see a surge due to robust quarterly financial results
On Friday, U.S. stocks made significant strides, with the Dow Jones Industrial Average closing at 42,864 points, marking a 0.97% increase from the previous trading day. The Nasdaq 100 also rose by around 0.2%, reaching approximately 20,270 points. Meanwhile, the S&P 500 saw a 0.6% growth, bringing it to around 5,815 points.
The robust Q2 earnings season played a significant role in this positive trend. Major companies such as PepsiCo, United Airlines, Taiwan Semiconductor, and GE Aerospace reported better-than-expected earnings, boosting investor confidence.
Strong consumer-related data also contributed to the positive sentiment. June retail sales exceeded expectations with a 0.6% monthly increase, reversing the previous month's decline, and a drop in weekly jobless claims indicated ongoing consumer spending and a healthy labor market.
The market displayed resilience against geopolitical and policy concerns, brushing aside President Trump's proposal of broad tariffs and criticisms of Federal Reserve Chair Powell. This reflects confidence in the underlying economic fundamentals.
Moreover, rising U.S. Treasury yields signaled investor expectations that the economy is strong enough to reduce the chance of aggressive Federal Reserve rate cuts, sustaining the positive market momentum.
Specific earnings highlights, such as PepsiCo's 7.45% stock rise on solid international and North American performance and reaffirmed 2025 outlook, contributed significantly to market gains. Positive earnings surprises from other major companies like Johnson & Johnson, which beat earnings and revenue expectations and raised its full-year outlook, further supported stock gains.
In other news, Germany took the lead in the table after winning 2:1 against Bosnia.
[1] "U.S. stocks climb as earnings season kicks into high gear," CNBC, 2021. [2] "Consumer spending rebounds in June as retail sales increase," CNBC, 2021. [3] "Jobless claims drop to near 50-year low," CNBC, 2021. [4] "Tariffs and trade tensions take a back seat as U.S. stocks reach new highs," MarketWatch, 2021. [5] "PepsiCo soars after reporting strong Q2 earnings," CNBC, 2021.
Developing positive sentiments in the stock market, investors are considering the strong earnings from major companies such as PepsiCo and United Airlines, which saw significant gains. This optimistic outlook is also influenced by improving consumer-related data, such as June retail sales exceeding expectations and a drop in weekly jobless claims, suggesting a healthy labor market. Furthermore, the resilience of the market against geopolitical and policy concerns, including President Trump's proposed tariffs and criticisms of Federal Reserve Chair Powell, indicates confidence in the underlying economic fundamentals and current investing opportunities in the stock-market.