Wall Street kicked off Friday, July 18, on a high note, with investors eyeing continued gains after the S&P 500 and Nasdaq reached fresh record highs earlier in the week. While the Dow dipped slightly down about 20 points the S&P 500 rose 0.2%, and the Nasdaq climbed another 0.3%, signaling ongoing market strength heading into the weekend.
The upbeat tone came on the back of strong quarterly earnings and better-than-expected economic data. Big names like PepsiCo, United Airlines, and Netflix delivered solid results, and encouraging retail sales and jobless claims figures added fuel to investor optimism.
Crypto markets joined the rally, boosted by major legislative news. Bitcoin edged up 0.35%, inching closer to the $120,000 mark, while Ethereum surged nearly 7%, breaking past $3,600. This came as the U.S. House of Representatives passed the GENIUS Act set to become the first major piece of crypto legislation in the country. The bill now awaits President Trump’s signature, marking a historic moment for the digital asset industry.
Still, not everything is smooth sailing. The global trade outlook remains a question mark, especially after President Trump’s latest tariff-related comments earlier this week. Market participants are also keeping a close watch on the Federal Reserve and its interest rate path.
The Fed recently indicated it would hold interest rates steady, a move that contrasts with more aggressive policies from the European Central Bank and others. As of now, traders see about a 56% chance of a rate cut in September, according to CME’s FedWatch tool while a July cut is seen as highly unlikely.
Adding to the tension, Fed Chair Jerome Powell is facing fresh political pressure. The White House has accused him of misleading Congress about a $2.5 billion renovation project at the Fed’s headquarters. Although Trump says he doesn’t plan to fire Powell, he has openly criticized the scale of the renovation, suggesting it could be a reason for dismissal down the line.
In the meantime, markets continue to hum with optimism but investors are clearly keeping one eye on earnings and the other on Washington.
