Your Capital Markets Snapshot: Markets Continued Upward Trajectory

Markets continued their upward trajectory, as the S&P 500 and Nasdaq continue climbing to new all-time highs. Markets have been buoyed by strong Q2 earnings, new trade deals, and resilient economic data. This upcoming week is loaded with earnings and economic releases, which introduces the potential for increased short-term volatility on the back of any surprises. Thus far Q2 is off to a strong start for earnings releases. With just under half of the S&P 500 companies reporting this week, we will get more clarity on the strength of earnings growth and potential impacts of US tariff policy on future growth prospects. A recent string of trade deals has led to decreasing uncertainty around US trade policy and created a template for future negotiations. While geopolitical tensions remain elevated in parts of the world, equity markets have showed resilience, supported by solid fundamentals and corporate performance. As valuations are high relative to history, a strong earnings season is important to support the recent growth trend.