US stock market today rallied: Dow, S&P 500, Nasdaq hit new highs as strong TSMC, PepsiCo earnings and retail sales spark Wall Street surge

US Stock Market Today: Dow, Nasdaq, and S&P 500 Rise as Earnings, Retail Sales, and Fed Tensions Shape Wall Street Mood- US stock market today saw a modest but broad-based rally, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ticking higher as investors responded to upbeat earnings reports and a surprise jump in retail sales. While markets are riding near all-time highs, traders remain cautious amid political noise from President Trump, who continues to push against Federal Reserve Chair Jerome Powell over interest rate policy. At the same time, consumer spending appears healthy, jobless claims dropped, and big tech earnings are kicking off with Netflix in the spotlight.

How did the major indexes perform today?

The stock market closed modestly higher across the board:

• Dow Jones Industrial Average: +0.32% to 40,317.85
• S&P 500: +0.18% to 5,645.25
• Nasdaq Composite: +0.12% to 18,405.72

This marks another milestone week for the market, with all three indexes hovering at or near all-time highs amid resilient economic data and strong earnings momentum.

What drove US stocks higher today?

The Dow Jones added 0.3%, the S&P 500 rose 0.3%, and the Nasdaq Composite climbed 0.4% on Thursday. This came as investors weighed strong earnings and new data showing that retail sales rebounded in June, despite ongoing concerns about inflation and tariffs. The retail data suggested that consumers are still spending, even with Trump’s tariffs in place—offering a positive signal for the broader economy.

Tech stocks remained at the center of the market momentum, helping the Nasdaq extend its record-setting run. Market sentiment was also supported by easing unemployment claims, suggesting resilience in the job market.

Why did retail sales surprise the markets?

June’s U.S. retail sales surged +0.6%, significantly above the consensus estimate of +0.1%, according to the Commerce Department. The rebound comes after a -0.1% dip in May, showing that consumer spending remains robust despite concerns about inflation and rising borrowing costs. Key highlights:

• Gasoline sales jumped 2.3%
• E-commerce grew 1.2%
• Restaurant and bar spending climbed 0.8%

This stronger-than-expected data boosted investor sentiment and eased recession worries.

Are Trump’s threats to fire Fed Chair Powell affecting the market?

Yes, but the impact is mixed. On Wednesday, Trump’s renewed threats to oust Federal Reserve Chair Jerome Powell rattled investors and triggered a brief sell-off. While Trump later said he is “not planning” to remove Powell, his ongoing criticism of the Fed’s resistance to interest rate cuts continues to stir uncertainty.

Still, the market appears to be pricing in stability at the next Fed meeting in two weeks. As of now, nearly 100% of trader bets expect no change to interest rates, according to futures data. This means Trump may not get the rate cuts he’s seeking—at least not yet.

Which earnings reports moved the markets?

TSMC (Taiwan Semiconductor Manufacturing Company)

• Stock rose 3.9%
• Q2 profit surged 36% YoY
• Raised full-year revenue forecast due to booming AI chip demand

The world’s top chipmaker’s upbeat report sent a ripple effect across the semiconductor sector, helping lift shares of Nvidia, AMD, and other chip stocks.

PepsiCo (PEP)

• Shares jumped 6.7%, their best day since 2022
• Reported strong demand in energy drinks and low-sugar sodas
• Revenue rose 4.2% YoY, topping estimates

The snack and beverage giant’s performance helped boost other consumer staples, with Coca-Cola and McDonald’s also gaining more than 1%.

United Airlines (UAL)

• Shares edged up 0.5%
• Beat earnings expectations but issued a cautious Q3 forecast due to Newark airport disruptions

What’s happening with interest rate expectations?

Markets are currently pricing in a 54% chance of a Fed rate cut in September, according to CME FedWatch data. A July cut is considered unlikely after recent strong inflation and jobs data.

Adding to the uncertainty, rumors circulated on Wednesday about President Trump possibly firing Fed Chair Jerome Powell, though the White House later denied those claims. The brief market dip that followed showed how sensitive investors remain to Fed independence and future policy direction.

Are tariffs still a threat to the market rally?

Yes. The Biden-to-Trump tariff transition remains a wildcard. The proposed August 1 tariff increase—which targets Chinese electric vehicles and semiconductors—continues to stir inflation fears and could weigh on future earnings reports.

Fed Governor Lisa Cook emphasized in a Thursday speech that “current inflation risks remain, and the Fed is not yet ready to pivot toward easing.”

Which other stocks and sectors stood out?

• Lucid Group (LCID): Spiked 44% after Uber announced a major investment and partnership deal involving EV fleets
• Chevron (CVX): Slipped 0.6%, dragging slightly on the Dow amid weakness in energy prices
• Netflix (NFLX): Rose 0.8% ahead of its Q2 earnings report due after the close; Wall Street is watching ad-tier growth and password-sharing crackdowns

How did retail sales and jobless claims influence investor sentiment?

The US consumer showed surprising strength. Retail sales in June rebounded, indicating steady spending despite inflation and tariffs. This matters because consumer spending accounts for nearly 70% of the US economy. So far, earnings from major banks have echoed that sentiment, with executives saying Americans are still doing “fine.”

Also on Thursday, the Department of Labor reported 221,000 initial jobless claims for the week ending July 12. That’s the lowest level in three months, suggesting fewer layoffs and a resilient labor market. These positive indicators offered some reassurance to investors after a mixed May.

Which stocks stood out in today’s earnings-driven market?

TSMC (TSM) made headlines with a record quarterly profit, boosted by surging demand for AI chips. That sent its shares higher and lifted the broader semiconductor space, including companies linked to Nvidia, a key TSMC client.

PepsiCo (PEP) also surprised the market by reporting better-than-expected revenue and revising its 2025 profit outlook slightly upward. On the flip side, all eyes are on Netflix (NFLX), which is set to release its quarterly earnings after the bell. Netflix shares have already gained sharply this year and are expected to set the tone for the rest of Big Tech earnings season.

Today’s US Market Performance

The US stock market today stayed positive as strong earnings and solid retail sales offset political drama and interest rate uncertainties. With the Nasdaq setting records and jobless claims falling, investors seem cautiously optimistic. But the road ahead includes Big Tech earnings, more Fed commentary, and the ever-present shadow of Trump’s economic maneuvers—so expect more twists in the days to come.

What’s next for the markets?

Investors are closely watching:

• Netflix earnings results later today
• More retail and earnings data next week, including from Tesla, Johnson & Johnson, and American Express
• Any updates on the Fed’s interest rate outlook and tariff policy announcements

FAQs:

What is the market outlook in today’s stock market update?
Today’s stock market shows cautious optimism, with gains driven by strong earnings and consumer data.

Why is President Trump targeting Jerome Powell?
Trump is pressuring Fed Chair Powell to cut rates, citing dissatisfaction with the current interest rate policy.