S&P 500 and Nasdaq Composite hit new highs

The S&P 500 and Nasdaq Composite extended their gains to record highs on Wall Street Monday ahead of earnings reports from companies like Alphabet and Tesla this week.

The S&P 500 rose 0.14% to 6,305.6 points, the Nasdaq rose 0.38% to 20,974.18 points, and the Dow Jones Industrial Average was virtually unchanged at 44,323.07 points, erasing earlier gains.

Among sectors, communications led the gains, and energy led the declines.

In economic news, The Conference Board's index of leading indicators fell 0.3% in June, as expected in a survey compiled by Bloomberg.

"The Conference Board does not forecast a recession, although economic growth is expected to slow significantly in 2025 compared to 2024," said Justyna Zabinska-LaMonica, senior manager of Business Cycle Indicators at the Conference Board.

"Real GDP is projected to grow 1.6% this year, and the impact of tariffs will become more evident in the second half of the year as consumer spending slows due to rising prices," he added.

In corporate news, Verizon Communications shares rose 4.1%, the biggest gain in the S&P 500. The company raised the low end of its full-year earnings growth forecast after posting better-than-expected second-quarter results.

AES shares rose 2.4% after Susquehanna raised its price target on the stock to $16 from $15 and maintained a positive rating.

Block's shares rose 7.2 percent. The company will join the S&P 500 Index starting Wednesday, replacing Hess. Molina Healthcare shares fell 3.7 percent.

TD Cowen lowered its price target from $369 to $283 and maintained its "buy" rating.

Alphabet, Google's parent company (+2.2%), rallied ahead of its quarterly report on Wednesday. Both Alphabet and Tesla (-0.35%), which also reports on Wednesday, are kicking off the release of earnings from the so-called Magnificent Seven, and their reports could set the tone for other major companies reporting in the coming days.

Apple (+1.40%) and Amazon (+0.62%) rose, helping the S&P 500 rise.

With the August 1 deadline for Trump's tariffs approaching, the S&P 500 is up about 8% year-to-date, as investors bet the economic damage from the tariffs will be less than feared.

Commerce Secretary Howard Lutnick expressed confidence Sunday that the United States could reach a trade deal with the European Union, even as the bloc's members explored possible countermeasures.

Trump has threatened 30 percent tariffs on imports from Mexico and the EU, and has sent letters to other trading partners, such as Canada, Japan, and Brazil, setting tariffs ranging from 20 to 50 percent.

Investors, focused on the impact of tariff uncertainty on the U.S. economy, will analyze jobless claims data and the July business activity report, due out Thursday.

They will also be watching a speech Tuesday by Federal Reserve Chairman Jerome Powell for clues about when the Fed might cut interest rates, especially given last week's mixed inflation signals.

They start the week on a downward trend

Mexican stock markets started the week with losses, amid financial information from local and international companies, as well as news about the United States' trade environment with other nations.

The Mexican Stock Exchange's main index, the S&P/BMV IPC, lost 0.77% to 55,841.30 points, while the FTSE-BIVA, the most representative indicator of the Institutional Stock Exchange, fell 0.86% to 1,122.39 points.

Indicators fell for the second day in a row, reaching their lowest level in 11 weeks or since May.

The market closely followed U.S. trade policy to assess whether it would reach an agreement with the European Union and the other countries that received a letter announcing the imposition of unilateral tariffs that would take effect on August 1.

"We maintain our view that the balance of risks remains tilted to the downside. Most of the factors injecting volatility into the market continue to stem from the ups and downs of the Donald Trump administration," wrote Fernando Rodríguez, an analyst at Invex, in a report.

Rodríguez also believed that the reporting season would have to be exceptional to act as a catalyst in the short term.

This Monday, shares of Quálitas, the country's largest auto insurer, lost 9% after its second-quarter results showed some pressure on profitability.