The S&P 500 index(SPX.US) hit a fresh record high on Friday, boosting Wall Street's chances for a winning week, helped by gains in tech stocks.

Latest Updates as of 10:00:32 on Jul 18 ET, the S&P 500 index(SPX.US) gained 14.2 points or 0.23% to 6,311.5, the NASDAQ(IXIC.US) rose 56.7 points or 0.27% to 20,942.3, and the Dow Jones Industrial Average(DJI.US) declined by 50.4 points or 0.11% to 44,434.1.

Nvidia shares climbed 0.4%, Tesla gained 1.6%, Alphabet and Amazon advanced 0.5% and 0.7% respectively. About 60 S&P 500 companies have reported Q2 earnings, with 86% beating expectations.

Pepsico, Inc.(PEP.US) and United Airlines Holdings, Inc.(UAL.US) shares rose after beating earnings estimates. Netflix, Inc.(NFLX.US) reported better-than-expected earnings but shares fell 4%. Strong US economic data also lifted major benchmarks this week.

On Friday, US stocks opened higher, with all three major indexes poised for weekly gains. Traders focused on corporate earnings and trade developments.

The market outlook remains cautiously optimistic, with leading sectors driving the rally. Strong economic data and corporate earnings reports alleviated uncertainties caused by the trade war.

Next week, companies such as Alphabet and Tesla will release their earnings, further testing market sentiment. Fed Governor Waller advocated for a rate cut due to private sector hiring concerns.

New US home starts rose to an annualized rate of 1.321 million in June, higher than expected. Building permits also increased, while completions fell.

Stocks to Watch

• Nvidia Corporation(NVDA.US) 's 14-day RSI surpassed 80 on Thursday, hitting its highest level since June 2024. The stock subsequently fell over 20% within six weeks. Despite the strong rally, analysts caution against the technical indicator, suggesting buying has reached extreme levels. Nvidia Corporation(NVDA.US) CEO Jensen Huang has repeatedly emphasized that the US decision to restrict AI chip exports to China is a major policy mistake, but there has been no sign of policy easing. However, the situation has taken a turn for the better. On the evening of July 14, Nvidia Corporation(NVDA.US) announced it had received assurances from the US government to allow exports of some chips to China, including the H20 chip designed specifically for China. Rival Advanced Micro Devices, Inc.(AMD.US) also quickly issued a similar statement. These export licenses are expected to generate billions of dollars in annual revenue for both companies, marking a significant shift from the Trump administration's previous inflexible stance.
• Bank of America Global Research raised its price target for Microsoft Corporation(MSFT.US) from US$515 to US$585.
• Amazon.com, Inc.(AMZN.US) is implementing a human resources restructuring plan, with multiple departments in its cloud computing division AWS facing layoffs affecting at least hundreds of positions, according to reports. Amazon spokesperson Brad Glasser stated in a media release on Thursday that some positions would be eliminated within specific AWS teams. The layoffs reportedly affected at least the AWS customer specialist group, responsible for new product ideation and existing service sales.
• Meta Platforms, Inc.(META.US) 's Chief Global Affairs Officer Joel Kaplan announced on July 18 that the company would not sign the final version of the EU's AI Code of Conduct, citing legal uncertainties and measures beyond the scope of the EU's AI Act.
• Kaplan mentioned that 44 major European companies, including Bosch, Siemens, SAP, and Airbus, had signed a joint letter earlier this month urging the European Commission to halt the implementation of the Code. They share concerns that over-intervention could stifle the development and deployment of cutting-edge AI models in Europe.
• Hess Corporation won an arbitration case against ExxonMobil.
• Chevron Corporation(CVX.US) prevailed in a mediation over Guyana oil assets, clearing the way for Hess' acquisition.
• Netflix exceeded profit expectations due to the success of "Squid Game" and raised its full-year revenue outlook. However, the streaming giant's shares fell 1.6% in pre-market trading. The company has risen 43% this year.
• Industrial giant 3M raised its full-year profit outlook as its cost-cutting measures and focus on high-margin products bore fruit.
• GE Aerospace hit an all-time high intraday yesterday.
• Talen Energy plans to acquire power plants in Pennsylvania and Ohio for US$3.5 billion.
• Yum China announced its He Geng development plan to enhance its supply chain ecosystem.
• Citibank expects its recent ideal stock price rebound to continue for the next 12 days.
• Cryptocurrency-related stocks rose on news that Trump will sign an executive order allowing 401(k) retirement plans to invest in alternative assets like cryptocurrencies and gold.