US stocks edge higher as earnings season heats up, investors monitor tariff countdown

This week’s spotlight is firmly on the 'Magnificent Seven' tech giants, beginning with Alphabet and Tesla

US stocks traded modestly higher on Monday as investors braced for a crucial week of corporate earnings — particularly from tech heavyweights — while keeping close watch on evolving trade policy developments.

The S&P 500 rose 0.3 percent, the Nasdaq Composite climbed 0.5 percent, briefly touching a fresh intraday high, and the Dow Jones Industrial Average edged up by 44 points, or 0.1 percent. The market’s upward momentum follows last week’s rally, where the S&P 500 and Nasdaq posted gains of 0.6 percent and 1.5 percent respectively, setting new records. The Dow, however, ended the week marginally lower.

This week’s spotlight is firmly on the "Magnificent Seven" tech giants, beginning with Alphabet and Tesla, whose earnings are widely expected to set the tone for the remainder of the season. Analysts project these megacap firms will drive the bulk of S&P 500 earnings growth, with FactSet estimating a 14 percent year-on-year increase for the group — far outpacing the 3.4 percent growth projected for the rest of the index.

According to FactSet, more than 85 percent of S&P 500 companies that have reported so far have beaten expectations, with Bank of America tracking Q2 earnings growth at around 5% year-on-year.

Markets are also reacting to renewed rhetoric around tariffs. US Commerce Secretary Howard Lutnick reiterated Sunday that August 1 remains a "hard deadline" for trading partners to begin paying new tariffs announced earlier this year, though he left the door open for negotiations to continue beyond that date. The potential imposition of 30 percent tariffs on the EU and Mexico remains a key concern for global investors.

Shares of companies exposed to ether and broader crypto strategies rose sharply after President Trump signed key stablecoin legislation into law on Friday. The move marked the first formal step towards US crypto regulation.

Ether ETFs logged record $2.18 billion in weekly inflows, sending ether prices to $3,821.75 — their highest since December. Stocks such as Bitmine Immersion Technologies and Bit Digital gained over 2 percent, while SharpLink Gaming jumped 9 percent. Shares of Dynamix Corporation, a blank-check firm merging with an ether-centric entity, surged 30 percent ahead of its debut.