July will end with significant gains for the NASDAQ 100, Dow Jones, and S&P 500 as the rally broadens beyond mega-caps
July 31, 2023
Tech companies continue to fuel momentum on Wall Street as the S&P 500 and Nasdaq post straight monthly gains.

Nasdaq and S&P 500 main indexes saw increases in July and are on hot streaks
Beyond mega-cap businesses, the market expands
Overview
As July draws to a close, stock futures indicate a promising start for Wall Street, with key indices seeing significant gains. While the S&P 500 futures increased by 0.1%, the Dow Jones Industrial Average futures barely increased by 0.1%. However, Nasdaq-100 futures experienced a modest decline.
July has been a strong month for the S&P 500, with a 3% increase, marking its fifth consecutive month of gains – a remarkable feat not seen since August 2021. The tech-heavy Nasdaq Composite also fared well, gaining 3.8% month-to-date, and is on track for its fifth straight winning month.
Blue-chip companies that make up the Dow Jones had a strong 3.1% gain in July. Notably, the index’s 13-day winning run matched its longest winning streak since 1987.
Due to a change in involvement, the market’s impetus has expanded beyond mega-cap corporations. Since early June, the market has increased due to a string of encouraging economic reports from the United States, decreasing inflationary pressures, and hopes that the Federal Reserve will end its rate-hiking program.
Interest rates were increased by the Federal Reserve, hitting their highest level in more than 22 years. Chair Jerome Powell stressed the method the central bank takes, which is data-driven and meeting-by-meeting decision-making.
This week, investors are eagerly awaiting the big jobs report. Economists predict that the U.S. economy likely added 200,000 jobs in July, following an increase of 209,000 nonfarm payrolls in June.
In recent news, Morgan Stanley downgraded Salesforce, a software business, to equal weight despite being confident in its long-term potential and citing a lack of near-term catalysts. The analyst did, however, increase the price target from $251 to $278, indicating a 23% increase from the previous close. Although there was a 1.5% retreat in the premarket session, Salesforce shares have had a remarkable year, surging more than 70%. It will likely take some time for the company’s prospects in artificial intelligence to materialize.
The current earnings season has been promising, with about 78.7% of the S&P 500 businesses exceeding analyst projections. This result is better than the 66% quarterly beat rate that has been the norm since 1994.

Looking ahead, IT behemoths Apple and Amazon will publish their results later in the week, while ON Semiconductor, Arista Networks, and Western Digital are expected to post earnings on Monday.

The market’s recent strong performance and growing participation continue to pique investors’ curiosity and enthusiasm as traders closely monitor the employment report and earnings releases.

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