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S&P 500 And Nasdaq Set New Record Highs—Here’s Why Wall Street Expects Rally Could Climb Further

UNITED STATES, JUL 21 – The S&P 500 and Nasdaq set new records fueled by strong tech earnings and AI optimism as investors await Federal Reserve interest rate guidance this week.

  • This past week, the S&P 500 and Nasdaq hit record highs, but `It presents a red flag for the broader market,' Dubravko Lakos-Bujas wrote.
  • Alongside the Fed's hold on rates, June's CPI rose to its highest since February, and President Trump’s tariff clock ticks toward an August 1 'hard stop'.
  • According to CME Group's FedWatch tool, traders see over 50% odds of a Fed rate cut by September, as they largely rule out a July reduction.
  • All eyes are on whether 'Magnificent Seven' results will justify frothy valuations or echo a 2000s-style déjà vu, as investors await Alphabet and Tesla reports this Wednesday.
  • With Fed Chair Jerome Powell speaking tomorrow, investors will watch for clues on rate cuts and whether the August 1 tariff deadline sways the central bank's stance, analysts say.
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US shares rose on Monday, with the Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) moving towards new records. Wall Street began a busy week, marked by the presentation of the results of the great technology and the attention paid to the risks posed by the tariffs of President Trump.The Nasdaq, with its strong technological component, gained approximately 0.6%, following last week's record rally in growth names. The S&P 500 rose by 0.5%, while …

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The West Australian broke the news in Australia on Monday, July 21, 2025.
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