S&P 500 and Nasdaq Hit New Highs as Investors Eye Earnings, Trade Developments, and Fed Decision

Major U.S. stock indexes advanced on Monday, with the S&P 500 and Nasdaq reaching new highs as investors prepared for a week packed with corporate earnings, trade policy news, and an upcoming Federal Reserve decision.

Super Micro Computer led S&P 500 gains, surging over 10% ahead of its quarterly results, following reports that President Donald Trump eased technology export restrictions to China to support trade negotiations. Advanced Micro Devices rose 4.3% after increasing prices for its Instinct MI350 AI chip, reflecting confidence in its competitiveness against Nvidia. UBS analysts raised their price target for AMD, citing improved expectations for its upcoming earnings.

Nike shares climbed 3.9% after JPMorgan upgraded the stock to "overweight," highlighting progress in the company's recovery plan and opportunities related to next year's soccer World Cup in the U.S. Conversely, Albemarle, the world's largest lithium producer, fell nearly 11% as lithium prices remained weak and recent gains faded. Revvity dropped 8.3% after lowering its full-year profit outlook despite beating quarterly estimates, citing softness in its immunodiagnostics business in China. Centene declined 5.4% following a downgrade from Cantor Fitzgerald, with analysts pointing to challenges in healthcare exchange and Medicaid markets.

Wall Street analysts expressed increased optimism, with Oppenheimer raising its year-end S&P 500 target to 7100 and Morgan Stanley noting a higher probability for its bullish scenario. "Although much uncertainty and worry prevailed for some time both with trade policy and geopolitical events, and given the multitude of potential outcomes, we’d note that cooler heads prevailed — leading to positive outcomes, at least for now," Oppenheimer wrote. FactSet data indicated S&P 500 companies are on track for over 6% year-over-year earnings growth in the second quarter, though the magnitude of positive surprises remains below historical averages.

Firefly Aerospace announced plans to price its initial public offering between $35 and $39 per share, potentially valuing the company above $5 billion. The space technology firm intends to use proceeds to repay debt and has applied to list on the Nasdaq under the ticker "FLY." Firefly reported $60.79 million in revenue and a net loss of $231.13 million in 2024, with first-quarter 2025 revenue nearly matching the previous year's total.

UnitedHealth Group is set to report second-quarter results, with options pricing suggesting a move of more than 7% in its stock. The company has faced a sharp decline this year amid profit warnings, leadership changes, and a Justice Department investigation, but most analysts remain positive on its outlook.

Cheniere Energy shares rose after the U.S. and European Union agreed on a trade deal for the EU to purchase more American liquified natural gas, part of a broader agreement involving tariffs and increased European investment in the U.S.

Celcuity shares tripled after the company announced positive late-stage trial results for its experimental breast cancer treatment. The study showed significant reductions in disease progression or death, and the company plans to submit a New Drug Application to the FDA later this year. Dr. Sara Hurvitz, co-principal investigator, noted the unprecedented improvement in progression-free survival for this patient group.

As Microsoft, Apple, Amazon, and Meta prepare to report earnings this week, investors are focused on updates regarding artificial intelligence investments and trade policy impacts. Alphabet recently raised its capital expenditure forecast, and analysts expect other tech giants to provide insights on AI monetization and efficiency gains. Trade tariffs remain a key concern, particularly for Apple and Amazon, as companies navigate evolving U.S. trade policy.