Traders work on the floor of the New York Stock Exchange (NYSE) on July 7, 2025, in New York City.
Spencer Platt | Getty Images News | Getty Images
The S&P 500 narrowly posted another fresh record close on Tuesday, as traders weighed the latest earnings reports and new trade developments.
The broad market index ticked up 0.06% to end at 6,309.62 and notch its 11th record close in 2025. The 30-stock Dow Jones Industrial Average rose 179.37 points, or 0.40%, settling at 44,502.44. By contrast, the Nasdaq Composite slipped 0.39% and closed at 20,892.69, bogged down by declines in tech stocks. It was the first negative day for the tech-heavy index in seven sessions.
Chip stocks were under pressure, as downbeat sentiment in the space was fueled by a report by The Wall Street Journal that said SoftBank and OpenAI’s $500 billion AI project has faced difficulties in getting underway and scaled down its near-term plans. Broadcom lost more than 3% and artificial intelligence darling Nvidia shed more than 2%. Taiwan Semiconductor Manufacturing dropped nearly 2%.
Meanwhile, shares of aerospace and defense name Lockheed Martin were down nearly 11% after the company’s revenue for the second quarter missed analyst estimates. Similarly, Philip Morris lost 8% after the tobacco company’s second-quarter revenue fell short.
However, those declines were offset by gains in the broader market outside of tech. Investors flocked to the health-care sector in particular, which outperformed with a rise of nearly 2% on the day. That was bolstered by the advance of IQVIA – which soared almost 18% on the heels of an earnings and revenue beat, leading the S&P 500 – as well as other names like Amgen and Merck. Small caps also outperformed, as the Russell 2000 jumped 0.8%.
This comes as nearly 90 S&P 500 companies have reported, with almost 85% of those topping analysts’ estimates, according to FactSet data. Eyes are on commentary from companies about macroeconomic certainty, the impact of tariffs and details on demand and spending related to AI.
Google parent Alphabet and Tesla will report Wednesday, kicking off highly anticipated results from the “Magnificent Seven” companies. The megacap tech companies are expected to contribute to a significant amount of earnings growth this season.
Because of the recent rally in stocks, investors are watching for how far the market can still run from here.
“This market’s pretty stalled out,” Jay Hatfield, CEO at Infrastructure Capital Advisors, told CNBC. His 6,600 year-end target on the S&P 500 calls for almost 5% upside from Tuesday’s close. “We are going to need to have very strong tech earnings to propel the market much higher.”
Traders also assessed the latest on the tariff front, with Treasury Secretary Scott Bessent saying the U.S. will likely extend a deadline to reach a deal with China. Bessent added that he’s planning to meet with Chinese officials in Stockholm next week.
President Donald Trump said later Tuesday that the U.S. has “concluded” a trade deal with the Philippines, which includes a 19% tariff on imported goods from the southeast Asian country. The Philippines has not yet confirmed that the deal has been made.
