The S&P 500 and Nasdaq Composite closed at fresh record highs on Thursday (Friday AEST), buoyed by stronger-than-expected second-quarter results from Alphabet.
The gains came despite pressure on the broader market from losses in IBM and Tesla.
The S&P 500 edged up 4.5 points, or 0.1%, to finish at 6,363.4, while the Nasdaq Composite rose 37.9 points, or 0.2%, to end at 21,058.0.
Both benchmarks had set new intraday all-time highs earlier in the session, bolstered by a 0.9% advance in Alphabet shares following upbeat quarterly earnings and revenue.
In contrast, the Dow Jones Industrial Average declined by 316.4 points, or 0.7%, to 44,693.9 as IBM dropped 7.6% after the company’s software segment posted disappointing second-quarter revenue.
Tesla also weighed on sentiment, slipping 8.2% after the electric vehicle maker reported a second consecutive quarterly decline in automotive revenue.
Beyond corporate earnings, markets turned their focus to a rare political development: President Donald Trump visited the Federal Reserve on Thursday, marking the first official presidential trip to the central bank in nearly 20 years.
U.S. President Donald Trump said he would not dismiss Federal Reserve Chair Jerome Powell but reaffirmed his desire for lower interest rates following the visit to the central bank.
The broader market is coming off a strong showing on Wednesday, which was driven by optimism over trade negotiations. The S&P 500 marked its 12th record close of the year, while the Nasdaq Composite topped the 21,000 mark for the first time.
Meanwhile, reports of progress in trade talks between the United States and the European Union further buoyed investor sentiment.
According to the Financial Times, diplomats said the U.S. is nearing a deal with the EU that could include a 15% tariff on certain imports.
On the bond markets, Treasury yields inched higher. The 10-year yield rose 0.4% to 4.400%, while the 2-year yield gained 0.2% to 3.916%.
