Markets pushed higher again this week, with the S&P 500 notching its fifth consecutive record close—its longest streak in over a year—fueled by AI momentum, strong earnings, and easing trade tensions ahead of the August 1 tariff deadline. The Dow rose 1.3%, the Nasdaq added 1.2%, and the S&P gained 1.6%, capping a week where bullish sentiment met a speculative undercurrent. President Trump reached new trade agreements with Japan, Indonesia, and the Philippines, while talks with the EU and Canada intensified, helping to wring out some of the geopolitical risk premium.
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Retail investors leaned in aggressively, driving a sharp rally in heavily shorted stocks and dominating call option volume, while hedge funds quietly de-grossed positions for a seventh straight session. Alphabet’s earnings helped solidify the AI investment theme, but Intel’s disappointing outlook reminded markets that not every tech name rides the same tailwinds. Beneath the surface, cracks emerged: economic data showed sluggish real consumption and softening labor trends, prompting a growing chorus of Fed officials to raise concerns ahead of next week’s FOMC meeting. With Powell under mounting political pressure and mega-cap tech earnings looming, markets are heading into a pivotal week where momentum meets macro.

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