Report
S&P 500 Hits New High as Trade Hopes Rise, Eyes on Tesla & Big Tech Earnings
Feb 24, 2025
SHARE THIS ARTICLE:
Back to Articles
Markets showed mixed performance on Tuesday, but the S&P 500 managed to close at a fresh record, signaling continued resilience despite tariff uncertainty and mixed earnings results.
Market Recap – July 22
- S&P 500: Closed at a new record high of 6,309.62, barely above flat.
- Dow Jones: Gained 0.4% to close at 44,502.44, boosted by trade optimism.
- Nasdaq Composite: Fell 0.4% to 20,878.54, ahead of major tech earnings.
Tariff & Trade Headlines Fuel Optimism
- President Trump announced new trade deals with the Philippines and Japan:
- Japan agreement includes a 15% “reciprocal” tariff on goods.
- Sentiment lifted in late trading, sending futures slightly higher.
- Despite General Motors warning of deeper Q3 tariff impacts ($1.1B Q2 hit), markets focused on the potential for broader trade breakthroughs.
All Eyes on the Magnificent Seven, as They Will Shape Rest of Month Stock Market Performance
- Key Q2 earnings from Alphabet (GOOGL, GOOG) and Tesla (TSLA) due Wednesday.
- Investors seek validation that AI driven valuations are backed by real performance.
- Big Tech results will define the next leg of the rally.
Zooming into Tesla’s earnings, as charts are already pointing to something:
Let’s start with what investors are awaiting from Tesla's Q2 earnings:
Robotaxi Rollout: Progress updates on Austin pilot and expansion to other cities like Phoenix and California.
- Affordable Models: Timeline for cheaper Tesla models amid rising demand pressure.
- Full Self-Driving (FSD): Clarity on timeline, technical/regulatory hurdles for unsupervised FSD.
- Optimus Robot: Near-term commercial use cases, production scaling, and revenue potential.
- Long-Term Vision: How Tesla’s AI and autonomy push translates into real growth over the next 2–3 years.
Earnings Perspective:
- Tesla delivered 384,122 vehicles in Q2 2025 — in line with expectations but down 13.5% YoY, signaling softer demand. Production missed targets, and rising inventory raises red flags despite aggressive U.S. sales incentives.
Summary:
- Optimism remains. Elon Musk’s renewed focus on Tesla as it is marked by its accelerated AI, Robotaxi trials, and leadership changes has reinvigorated bullish sentiment. Analysts like Wedbush see this pivot as a signal Tesla is doubling down on its next growth frontier: AI and autonomy.
From a Charting Perspective:
The current price action is forming a well-defined ascending triangle pattern, maintaining levels above a key demand zone, which supports a continued bullish bias in the near term. However, with earnings season underway, heightened volatility and the potential for significant price gaps should be anticipated. Caution is advised during this period of increased uncertainty.
With just days remaining until President Trump’s August 1 deadline to finalize trade deals or escalate tariffs, markets are bracing for high-stakes decisions. While recent developments hint at progress, investors remain cautious as the risk of abrupt policy shifts looms large.
Related Articles
Market Analysis
Central Banks Diverge: RBA Leans Dovish, Fed Holds Amid Tariff-Driven Uncertainty
Aug 31, 2025
Market Analysis
Markets on Edge: OPEC+, Gold Tariffs, and Central Bank Shifts Reshape Global Outlook
Aug 8, 2025
Market Analysis
Wall Street Rallies on AI Buzz, but All Eyes Turn to Critical Jobs Report
Aug 1, 2025