*

Tariffs on Japanese autos cut to 15% from 27.5%

*

Thermo Fisher surges after beating Street estimates

*

Texas Instruments ( TXN ) slumps as tariff uncertainty hits demand

*

Tesla reports after the bell, investors brace for revenue

fall

*

S&P 500 +0.78%, Nasdaq +0.61%, Dow +1.14%

(Updates with final price moves)

By Noel Randewich and Nikhil Sharma

July 23 (Reuters) - The S&P 500 and Nasdaq notched

record high closes on Wednesday, lifted by Nvidia ( NVDA ) and GE

Vernova ( GEV ), as the European Union and the U.S. appeared headed

toward a trade deal similar to an agreement President Donald

Trump struck with Japan.

The White House's deal with the European Union would include

a broad tariff of 15% on EU goods imported into the U.S., two

diplomats said. The rate, which could also extend to cars, would

mirror the framework agreement the U.S. has struck with Japan.

The benchmark S&P 500 has now climbed about 8% in 2025,

while the Nasdaq has gained almost 9%.

"The key thing is the markets have confidence that the White

House is going to continue to work through these trade deals,"

said Larry Tentarelli, chief technical strategist for Blue Chip

Daily Trend Report.

Shares of GE Vernova ( GEV ) surged to 14.6% an all-time

high after the power equipment maker raised its revenue and free

cash flow forecasts and beat Wall Street estimates for

second-quarter profit. GE Vernova ( GEV ) has gained over 80% so far in

2025, with power consumption on track to hit record highs due to

growing demand from AI and cryptocurrency data centers.

Heavyweight AI chipmaker Nvidia ( NVDA ) climbed 2.25% and

fueled gains in the S&P 500 and Nasdaq.

Tesla edged up 0.14% ahead of its quarterly report

due after the closing bell. Investors will focus on the electric

vehicle maker's analyst conference call. They have braced for

Tesla to report a steep drop in revenue related to mounting

competition, a lack of new car models and a consumer backlash

against CEO Elon Musk.

"What you will hear is an awful lot of discussion about the

future and a broad acknowledgement that this was a terrible

quarter," said Michael Green, chief strategist at Simplify Asset

Management in Philadelphia.

Alphabet dipped 0.58%, with the Google parent also

set to report results after the close of trading.

The S&P 500 climbed 0.78% to end the session at 6,358.91

points.

The Nasdaq gained 0.61% to 21,020.02 points, while the Dow

Jones Industrial Average rose 1.14% to 45,010.29 points, just

short of its December 4 record high close.

Volume on U.S. exchanges was relatively heavy, with 19.1

billion shares traded, compared to an average of 17.7 billion

shares over the previous 20 sessions.

Wall Street's "fear gauge", the CBOE Volatility Index

, dipped to its lowest level in over five months.

Analysts on average expect S&P 500 companies to report a

7.5% increase in earnings for the second quarter, according to

LSEG I/B/E/S. Microsoft ( MSFT ), Nvidia ( NVDA ) and other technology

heavyweights that have seen their valuations soar due to their

leadership in AI are expected to drive much of that quarterly

earnings growth.

Medical equipment maker Thermo Fisher surged over 9%

after beating Wall Street's estimates for second-quarter profit

and revenue.

Texas Instruments ( TXN ) tumbled 13% after its quarterly

profit forecast pointed to weaker-than-expected demand for its

analog chips and underscored tariff-related uncertainty.

Texas Instruments' ( TXN ) report weighed on other analog

chipmakers, with NXP Semiconductors ( NXPI ), Analog Devices ( ADI )

and ON Semiconductor losing between 1% and 4.6%.

In economic data, U.S. existing home sales fell more than

expected in June. Focus now shifts to Thursday's weekly jobless

claims numbers and S&P Global's flash PMI data to gauge economic

health in the wake of tariff uncertainties.

Following a mixed set of economic data last week, traders

have ruled out an interest rate cut by the Federal Reserve next

week. Odds for a September reduction stand at about 58%,

according to the CME FedWatch tool.

Advancing issues outnumbered falling ones within the S&P

500 by a 2.1-to-one ratio.

The S&P 500 posted 50 new highs and 2 new lows; the

Nasdaq recorded 96 new highs and 20 new lows.