Alphabet’s Earnings Surge Propels Nasdaq & S&P 500 to New Highs

Tech titan Alphabet smashes expectations—and the market responds with a rally. Here's why Wall Street's buzzing.

Big Tech flexes its muscles again

Another quarter, another beat. Alphabet's earnings report sent shockwaves through the indices—proving yet again that FAANG stocks still call the shots in this market.

The ripple effect

Nasdaq and S&P 500 traders rode the coattails of Google's parent company, with algos pumping the indices faster than a crypto bull market on leverage. Because nothing fuels confidence like one tech giant carrying the entire economy.

Another day, another case of 'markets go up when the trillion-dollar companies say so.' Stay tuned for tomorrow's episode of: 'How long can this possibly last?'

Why are stocks near all-time highs?

A trade deal between the U.S. and Japan unlocked buying pressure, adding to the overall bullishness that has engulfed stocks since late April.

Recent big bank earnings results have also been followed by earnings beat for leading technology companies. Alphabet reported on Wednesday, and Wall Street cheered the tech giant’s second-quarter earnings beat.

Meanwhile, Google’s forecast for the artificial intelligence space also saw AI related companies such as Nvidia pop. These companies are likely to buoy Nasdaq and send it to new record highs.

However, Tesla shares dropped more than 6% in premarket trading.

As well as a 16% dip in revenue, Elon Musk’s company saw its quarterly sales fall for a second straight quarter, denting investor confidence. Musk said during an earnings call that the EV giant could yet record a few more “rough quarters.”

What else are investors watching?

In addition to the earnings results of Tesla and Google parent Alphabet, sentiment on Wall Street remained focused on tariffs and the economy.

On the former, investors were weighing the market outlook around a potential trade deal between the United States and the European Union. While not in place, reports say a U.S.-EU deal on 15% tariff is close. This would be much lower than the 30% TRUMP threatened, but within the 15%-50% threshold the U.S. president says will be imposed on various countries starting Aug. 1.

Investor attention will also be on Trump’s expected visit to the Federal Reserve’s headquarters.

Fed chair Jerome Powell has come under fire amid criticism of the central bank’s refurbishment budget. At the center of the row is a reported $2.5 billion renovation splash.

Trump and his allies have seized on the ballooning renovation costs of the Federal Reserve’s headquarters—blaming them on wasteful spending and even suggesting they could justify removing Chair Jerome Powell—while the Fed defends the overhaul as necessary due to inflation, aging infrastructure, and unexpected issues like widespread asbestos removal.

The visit by Trump is widely seen as an escalation of his broader campaign to pressure the central bank, which he has repeatedly criticized for keeping interest rates too high.