Stock indexes surged with the S&P 500 and Nasdaq 100 hitting record highs due to strong earnings from Microsoft and Meta Platforms. Economic data showed a resilient labor market amidst lower consumer spending and sticky inflation. US weekly initial jobless claims rose slightly, personal spending and income in June were mixed, and core PCE price index rose above expectations.

In tariff news, President Trump announced tariffs on imports from South Korea and Taiwan, with deals in progress for Thailand and Cambodia. Market focus is on trade deals before Friday, with key economic data expected, including nonfarm payrolls, unemployment rate, hourly earnings, ISM manufacturing index, and consumer sentiment index. Trump’s August 1 deadline for trade deals looms.

Federal funds futures suggest a 40% chance of a rate cut in September. Earnings season intensifies, with Apple and Amazon.com reporting strong results. Overseas markets are mixed. Interest rates are up slightly. T-notes rallied on carryover from UK gilts and bond fund buying, then retreated on hawkish economic data and Fed Chair Powell’s comments.

European bond yields fell, while Eurozone employment remained steady. German unemployment rose less than expected, and CPI eased. Swaps discount an 11% chance of an ECB rate cut. Stock movers include Meta Platforms, Microsoft, eBay, Carvana, CH Robinson, and others. Align Technology and ARM Holdings lead losers. Baxter International, Lam Research, Qualcomm, and International Paper report losses.

Earnings reports for July 31 include a wide range of companies across different sectors. Stock market outlook remains robust with strong earnings driving gains but tempered by economic data and trade uncertainties. Market participants will closely monitor upcoming economic reports and trade developments to gauge future market direction.

Read more at Yahoo Finance: Stocks Rally on Stellar Earnings from Microsoft and Meta