U.S. stock markets surge as companies report mixed earnings

On July 29, 2025, U.S. stock indexes showed a notable upward trend as an actively packed week for Wall Street gained momentum. During early trading, the S&P 500 notably increased by 0.2%. This marks the index’s continuing success, having previously set an all-time high for six consecutive days. Companies such as JetBlue Airways and SoFi Technologies witnessed substantial stock price increases, experiencing gains of 14.4% and 16.2% respectively. Conversely, Merck's stock dramatically declined by 7.8% following its disappointing profit report, highlighting a mixed performance among U.S. companies that have released earnings this season. Additionally, the bond market saw a slight easing of Treasury yields ahead of a crucial Federal Reserve meeting where decisions regarding short-term interest rates are anticipated. The Federal Reserve is poised to start a two-day meeting that will primarily focus on evaluating economic indicators affected by ongoing trade tensions and tariffs influenced by President Donald Trump. Despite his requests for reduced interest rates to stimulate the economy, the Federal Reserve is inclined to gather further data before making significant moves in monetary policy. Talks between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng marked the second day of negotiations focusing on tariffs, with a critical August 12 deadline looming. Failing to establish a deal or an extension for their tariff truce could lead to the reinstatement of hefty triple-digit tariffs. Furthermore, the week is crucial due to various pivotal economic reports that are expected to be released, including updates on the job market, which could significantly influence market sentiment. This heightened week of earnings reports could play a decisive role in determining the trajectory of the U.S. stock market and its potential for further gains amidst concerns about overpriced valuations following a brisk upward trend in recent months. Companies like Beyond Meat, which demonstrated robust growth, saw a jump in stock prices despite reporting a loss of $19 million, as this was a more favorable result than analysts had predicted. However, firms that failed to meet earnings expectations, such as UnitedHealth Group, faced stock declines, further emphasizing the volatile nature of the market during this reporting season. In summary, as the busy week unfolds, investors are on high alert concerning how the many economic factors intertwined with corporate earnings will interact to either bolster the stock market to new heights or reinforce criticisms of unsustainable valuations that have escalated quickly in recent months.