Wall Street Nears Record Highs as Companies Report Profits

United States stock markets are approaching record highs as companies disclose their summer profits. The S&P 500 rose by 0.2% in midday trading, sitting just 0.1% below its all-time high achieved earlier this month. The Dow Jones Industrial Average increased by 0.7%, while the Nasdaq Composite experienced a slight decrease of less than 0.1%.

Asian markets also showed positive performance, with China’s CSI 300 gaining 1.53%, Hong Kong’s Hang Seng up 0.65%, Japan’s Nikkei rising by 0.27%, and India’s benchmark Nifty 50 increasing by 0.10%. Back in New Zealand, the S&P/NZX 50 closed up 0.25%.

Corporate Earnings Drive Market Movements

Among the notable gainers, Scott Technology surged by 11.96% after reporting nearly double the profit after tax, reaching $14.2 million, compared to $7.7 million in the previous year, despite flat revenue. Chief Executive Mike Christman noted early signs of success in the company’s strategy for the 2025 financial year, highlighting improvements in project governance and service revenue.

Other companies also experienced gains. Being AI saw a 10% increase, continuing its positive trend this month. Allied Farmers rose by 7.89%, followed by TruScreen with an increase of 5.26%, and South Port experiencing a 3.67% uptick after reporting a record full-year profit, supported by strong bulk and stable container volumes.

On the downside, Manuka Resources led the decliners, falling by 25.44%, followed by New Talisman Gold Mines at a decrease of 7.02%. AFT Pharmaceuticals dropped by 5.57% for the second consecutive day, while Tourism Holdings fell by 3.52%. Other notable declines included Rakon at down 3.41% and travel booking platform Serko ending the day 3.10% lower.

Global Market Trends and Expectations

In Sydney, the S&P/ASX 200 closed at a new high, up 0.7%, driven by mining stocks. This uptick followed a critical minerals deal signed between Australian Prime Minister Anthony Albanese and United States President Donald Trump at the White House. The United States is focusing on Australia’s rich rare-earth resources, especially as China tightens its export regulations on critical minerals.

Australia’s rare earths producers have seen significant growth this year, particularly following China’s announcement of stricter global export controls earlier this month. These minerals are essential for industries such as semiconductors, defense technology, and renewable energy.

Meanwhile, OpenAI announced the introduction of its web browser, Atlas, positioning itself as a competitor to Google as more users turn to artificial intelligence for information.

In the automotive sector, General Motors reported a smaller-than-expected impact from tariffs, prompting a boost in its full-year adjusted earnings forecast. The company’s third-quarter performance exceeded Wall Street expectations, leading to a surge of over 15% in its shares during afternoon trading, marking its largest one-day increase since May 2018.

Concerns persist in Europe as the automotive industry braces for potential production disruptions due to China’s export restrictions on semiconductors manufactured by Nexperia. Additionally, a US-backed mining investor emphasized the need for Washington to outspend Beijing on critical minerals projects to challenge China’s dominance in global supply chains.

As markets react to these developments, investors will closely monitor corporate earnings reports and global economic trends in the coming weeks.