Nasdaq 100 and Dow Jones: AI Tech, Healthcare Rise Ahead of Fed and Earnings Forecast

UnitedHealth rose 1.6%, while Walmart gained just over 1% after upbeat sales forecasts.

Financials also contributed, with Goldman Sachs and American Express up nearly 1%. Microsoft and Salesforce added modest support to the index.

Losses were muted but widespread among traditional defensive names. Johnson & Johnson and Procter & Gamble both declined around 1%, and IBM slipped 0.8%. Energy giant Chevron and Disney also posted modest losses as traders remained cautious ahead of next week’s data-heavy calendar.

How Are Earnings and the Fed Driving Sentiment?

So far, over a third of S&P 500 companies have reported, with 80% beating estimates—lifting expectations for Q2 earnings growth to 7.7%, up from 5.8% earlier this month. Key tech earnings next week—Amazon, Apple, Meta, and Microsoft—will be scrutinized for clues on AI investment returns and margin outlooks under tariff pressures.

On the economic front, new orders for core capital goods declined unexpectedly, suggesting business investment may be slowing as trade uncertainties persist. The Federal Reserve meets next week and is widely expected to leave rates unchanged at 4.25%–4.50%. Still, market participants will watch for commentary on inflation and rate-cut prospects, especially after recent criticism of Fed Chair Powell by President Trump.

Market Outlook: What Should Traders Watch?

With the major indexes on track for weekly gains, next week’s developments could test the market’s resilience. Traders should watch for earnings from the Magnificent 7, especially commentary on AI spending and margin forecasts. Additionally, clarity from the Fed on rate direction and economic conditions will be key for short-term positioning. Volatility may rise as data and geopolitical events collide with corporate earnings in a high-stakes stretch for risk assets.

More Information in our Economic Calendar.