The S&P 500 and Nasdaq hit record highs on strong economic data and consumer spending. Nasdaq has been at a record high in 6 of the last 7 sessions. The Nasdaq Composite rose 0.74% to 20,884.27, S&P 500 increased 0.54% to 6,297.36, and Dow Jones Industrial Average rose 0.52% to 44,484.49.

Wall Street’s strong run continues after tumbling post-Trump’s tariff announcements. Economic reports and second-quarter earnings season have been favorable. U.S. retail sales saw a sharp rebound in June, reflecting renewed economic momentum and consumer confidence.

Investors are monitoring the impact of Trump’s tariffs on the economy. The Fed is holding off on rate cuts due to potential inflationary effects. Fed Governor Adriana Kugler stated rate cuts are on hold. Traders predict a 54% chance of a September rate cut, with a July move unlikely.

Strong retail sales were accompanied by optimistic forecasts from consumer-facing companies. PepsiCo surged 7.5%, United Airlines rose 3.1%, and tech stocks, including chipmakers, saw gains. TSMC reported record profits, boosting the technology sector.

The blowout TSMC earnings signal strong demand for AI chips, setting a positive tone for Big Tech earnings. Technology and industrials indexes hit record highs, with financials leading the way. Netflix climbed 1.9% after reporting earnings above forecasts, driven by “Squid Game”.

Read more at Yahoo Finance: S&P 500, Nasdaq end at fresh record highs as data, earnings point to consumer strength