Markets Extend Record Run as Trade Optimism and Earnings Fuel Gains

The stock market’s upward momentum continued Wednesday, lifting both the S&P 500 and Nasdaq Composite to fresh record intraday and closing highs. While the early going was marked by resistance near Tuesday’s peak levels, the tide turned around midday as optimism around trade negotiations and corporate earnings pushed the indices to new heights.

The S&P 500 hit an intraday high of 6,395.82 before closing at 6,388.64, gaining 0.4% on the day. The Nasdaq Composite followed a similar trajectory, peaking at 21,159.80 and ending the session at 21,108.32, also up 0.4%.

Although no single catalyst drove the market, investor sentiment was buoyed by encouraging trade headlines. The Wall Street Journal reported that the Trump administration is set to resume trade talks with China next week, while Reuters suggested a U.S.–EU trade framework could be finalized as soon as this weekend. These developments came on the heels of a finalized U.S.–Japan deal earlier in the week, reinforcing confidence that more favorable trade terms with major partners could be secured before the August 1 deadline.

On the earnings front, while today’s batch of reports lacked the impact of Tuesday’s marquee names, the results remained broadly positive. That helped sustain expectations that next week’s mega-cap earnings could unlock even more upside.

The consumer discretionary sector led the way with a 0.8% gain, driven in part by Deckers Outdoor (DECK +11.4%), which soared after delivering an earnings beat. Tesla (TSLA +3.5%) also rebounded sharply from yesterday’s drop, despite cautious forward guidance, helping lift the sector.

Other top-performing groups included materials (+1.2%), industrials (+1.0%), financials (+0.7%), and health care (+0.5%). Overall, nine of the 11 S&P 500 sectors finished higher, while only energy (-0.4%) and communication services (-0.2%) ended the session in the red.

Market breadth improved throughout the day. Despite early weakness in smaller stocks, afternoon buying pushed the Russell 2000 to a 0.4% gain, while the S&P Mid Cap 400 advanced 0.9%. Advancers outpaced decliners by an 8-to-5 margin on the NYSE, and just edged them out on the Nasdaq.

With broad-based participation across sectors and market caps, investor risk appetite remains firm. The extended rally, fueled by trade progress and resilient earnings, continues to underscore bullish sentiment heading into a pivotal stretch of corporate results.

Our FTInvest 11 portfolio demonstrated resilience in today’s session, overcoming a soft start to launch a renewed push toward its all-time high — a level that had held firm for the past two weeks.

After a tentative opening, the index gained momentum and steadily advanced through the morning hours. While the pace of gains slowed somewhat mid-session, the index held its ground and closed firmly in positive territory.

By the end of the day, FTinvest 11 had added 0.54%, finishing at a new record high of 807.93. The move reflects a confident tone in the portfolio’s underlying components, as the index finally broke through the ceiling that had capped its progress in recent weeks.