The trajectory of U.S. equity indexes says it all: optimism around artificial intelligence continues to sweep through markets, turbocharged by resilient corporate earnings and cooling inflation fears - at least for now. The renewed appetite for American tech is pushing major benchmarks to fresh records. The Nasdaq 100 broke new ground above 23,200, while the S&P 500 climbed to a historic 6,336. This time, it wasn’t just semiconductors leading the charge - mega-cap names like Alphabet, Amazon, and Meta took the spotlight.

That said, the rally remains concentrated. Despite a notable drop in Treasury yields, smaller U.S. companies aren’t catching the same bid. The Russell 2000 slipped again yesterday, highlighting how market momentum is increasingly centered on a narrow band of tech giants.

Across the Atlantic, the story is less exciting. European markets mostly drifted lower or stayed flat - Paris lost 0.31%, Frankfurt ended unchanged, and London edged down 0.23%, pulling the Stoxx Europe 600 down 0.1% overall. It was a quiet session, overshadowed by ongoing EU trade tensions with the U.S. as Brussels prepares possible retaliatory measures ahead of an August 1 deadline. Whether earnings season can shift the focus remains to be seen. All eyes are on SAP - Europe’s most valuable company - set to report tomorrow evening, with LVMH, Roche, Nestlé, and TotalEnergies to follow.

Meanwhile, broader market trends persist:

  • The U.S. dollar is under pressure globally.

  • Treasury yields continue to ease.

  • Gold is on the rise, benefiting from both rate trends and dollar weakness.

  • Crypto assets are rallying, buoyed by fresh tailwinds from U.S. lawmakers.

  • Oil prices are losing steam amid ample supply.

Today’s macro calendar is quiet, but the earnings slate is anything but. In the U.S., a heavyweight lineup includes Coca-Cola, Philip Morris, RTX, Texas Instruments, and Intuitive Surgical. In Europe, Unicredit, Givaudan, and ASM International are on deck.

The performance of markets in Japan is fairly mixed. Shanghai and Hong Kong are gaining a few points at the end of the day. Sydney and Mumbai are hovering around the break-even point. Tokyo and Seoul are down more sharply. European leading indicators are in the red.

Today's economic highlights

On the macro agenda, one figure to watch is the Conference Board's consumer confidence index. See the full agenda here.

In corporate news:

  • Coca-Cola reported higher-than-expected revenue for the second quarter. The stock is up 1% in pre-market trading.
  • D.R. Horton posted third-quarter earnings and revenue above expectations.
  • General Motors reported a 32% drop in quarterly profit, citing Trump administration policies. The stock is down 3.7% in pre-market trading.
  • Humana announced it will eliminate about one-third of prior authorizations for outpatient services by January 1, 2026.
  • JPMorgan Chase is reportedly exploring plans to offer loans backed by client-held cryptocurrencies, including bitcoin and ethereum, starting next year, according to the Financial Times.
  • Northrop Grumman raised its full-year profit guidance.
  • Oracle will provide OpenAI with 2 million chips to boost AI data center capacity, according to a Tuesday press release.
  • RTX lowered its 2025 profit outlook, as the aerospace and defense giant faces fallout from President Trump's trade war.
  • Sarepta Therapeutics is down 7% in pre-market trading after announcing it would pause development on certain treatments.

Analyst Recommendations:

  • Alphabet : BNP Paribas Exane maintains a neutral recommendation with a price target raised from 172 to USD 174.
  • Caesars Entertainment : JP Morgan maintains its overweight recommendation and raises the target price from 47 to USD 48.
  • Cleveland-Cliffs : Morgan Stanley maintains its market weight recommendation and raises the target price from 8 to USD 10.50.
  • Colgate-Palmolive : Deutsche Bank maintains its hold recommendation with a price target raised from 95 to USD 96.
  • Domino's Pizza : Bernstein maintains its market perform recommendation and raises the target price from USD 460 to USD 490.
  • Ebay : TD Cowen maintains its hold recommendation with a price target raised from 64 to USD 72.
  • First Solar : JP Morgan maintains its overweight recommendation and raises the target price from 200 to USD 208.
  • Generac Holdings : JP Morgan maintains its neutral recommendation and raises the target price from 141 to USD 144.
  • Hf Sinclair : Piper Sandler & Co downgrades to neutral from overweight with a target price reduced from USD 53 to USD 51.
  • Kimberly-Clark : Deutsche Bank maintains its hold recommendation with a price target reduced from 141 to USD 136.
  • Marathon Petroleum : Piper Sandler & Co maintains a neutral recommendation with a price target raised from USD 175 to USD 182.
  • Marriott International : BMO Capital Markets maintains its market perform recommendation with a price target raised from 265 to USD 285.
  • Masco : Baird downgrades to neutral from outperform with a target price of USD 70.
  • Mastec : JP Morgan maintains its overweight recommendation and raises the target price from 180 to USD 214.
  • Pepsico : DZ Bank AG Research maintains its hold recommendation with a price target raised from 146 to USD 154.
  • Phillips 66 : Piper Sandler & Co maintains a neutral recommendation with a price target reduced from USD 148 to USD 147.
  • Quanta Services : JP Morgan maintains its neutral recommendation and raises the target price from 345 to USD 392.
  • Stanley Black & Decker : Baird maintains its neutral recommendation with a price target raised from 65 to USD 75.
  • Stellantis : Mediobanca maintains its underperform recommendation and reduces the target price from 8.10 to EUR 7.50.
  • Valero Energy : Piper Sandler & Co maintains its overweight recommendation with a price target reduced from USD 160 to USD 159.
  • Verizon Communications : Morgan Stanley maintains its market weight recommendation and raises the target price from 47 to USD 48.
  • W.r. Berkley : Goldman Sachs maintains its neutral recommendation with a price target reduced from USD 76 to USD 75.
  • Zions Bancorporation : JP Morgan maintains its neutral recommendation and raises the target price from 55 to USD 63.