Earnings, Fed Hopes, and M&A Drive Stock Rally

U.S. stocks rallied, buoyed by strong corporate earnings and growing optimism about potential Federal Reserve interest rate cuts, with the S&P 500, Dow Jones, and Nasdaq all posting gains. Apple led the market with a 5% surge following news of increased U.S. investments, while other notable gainers included McDonald's, Shopify, Arista Networks, and Wayfair on strong earnings. Steelcase's shares jumped over 60% after agreeing to a $2.2 billion acquisition by HNI Corporation, and CommScope soared following Amphenol's $10.5 billion deal to acquire its Connectivity and Cable Solutions business. However, some technology firms such as Super Micro Computer and Advanced Micro Devices declined amid disappointing results and tariff concerns. Ongoing apprehensions about tariffs persisted, especially for sectors most exposed to regulatory changes, with some analysts forecasting slower earnings growth. Broader market trends also reflected mixed impacts from tariffs, regulatory uncertainty, and shifting sector guidance.