US stocks posted gains for the week, pushing the S&P 500 Index and Nasdaq Composite to record highs for the 2nd consecutive week. The Dow Jones rose 1.26%, while the Russell 2000 index climbed over 0.9%. Stocks were supported by headlines around several new trade deals during the week, including announcements that the U.S. had reached agreements with Japan, Indonesia, and the Philippines. Reports that the U.S. and EU are progressing toward a deal ahead of August 1 also appeared to boost sentiment during the week. On the earnings front, Alphabet gained more than 4% as results beat consensus estimates, while the company’s commentary around AI appeared to provide a tailwind for AI-related stocks. Meanwhile, Tesla’s report appeared to fall short of consensus expectations, driving the EV stock lower by 4.1% for the week. US Treasuries were mixed this week with short-end yields higher while long-end yields were down 6bps. In international markets, the STOXX Europe 600 Index rose 0.54% as ECB holds interest rates. Japan’s stock markets registered strong gains over the week, with the Nikkei 225 Index rising 4.1%. Japanese Auto original equipment manufacturers soared on the announcement that Japan and the U.S. had reached a trade deal. The dollar ended the week lower, despite a strong comeback the last two days. Gold fell for the 3rd day in a row, testing its 50DMA. Bitcoin also fell for the 2nd week in a row, testing $115k at two weeks lows.
Have a great week-end
Charles for the team