S&P500 push to new ATH? US 500 (per 1.0)TRADENATION:US500TradeNationKey Developments: AI Drives Earnings Momentum Alphabet reported strong results, but flagged surging AI infrastructure costs, signaling increased capex ahead. SK Hynix posted record earnings and committed to expanding AI-related investments, reinforcing the sector’s critical growth role. Investor sentiment remains AI-positive, with capital rotation favoring tech and semiconductors despite margin compression risks. Banking Sector Boosted by Tariff-Driven Volatility Deutsche Bank’s FIC (Fixed Income & Currencies) trading revenue jumped 11% to €2.28B, its best Q2 since 2007, aided by global trade uncertainty. BNP Paribas also beat earnings estimates, continuing the strong showing from European banks amid market volatility. Trade & Tariff Watch The EU and US are nearing a deal on a 15% standard tariff rate, potentially stabilizing trade flows and market pricing. Trump’s broader reciprocal tariff push remains in focus, especially after the US-Japan deal. Investors are watching for signs of escalation or resolution with other partners like the EU and Canada. Fed in the Political Spotlight Trump visited the Fed’s construction site, criticizing costs and maintaining pressure on Chair Jerome Powell. Speculation about Fed leadership changes and political interference is unsettling, though markets have largely shrugged this off for now. Meanwhile, House Republicans are drafting a follow-up tax-and-spending plan, which could shape future fiscal policy and market expectations. Conclusion: S&P 500 Trading Outlook The S&P 500 remains buoyed by strong earnings, particularly from AI-linked sectors and financials, while geopolitical risks and tariff volatility are being absorbed as catalysts for trading profits rather than panic. Bullish factors: Strong corporate earnings (Alphabet, SK Hynix, Deutsche Bank), potential trade de-escalation (EU-US tariff deal), and AI momentum. Risks to monitor: Rising AI capex (impact on margins), political tension around the Fed, and tariff uncertainty. Key Support and Resistance Levels Resistance Level 1: 6387 Resistance Level 2: 6457 Resistance Level 3: 6502 Support Level 1: 6272 Support Level 2: 6224 Support Level 3: 6156 This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.