*

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

*

S&P 500 +0.59%, Nasdaq +0.39%, Dow +0.97%

(Updates with details of afternoon trade)

By Noel Randewich and Nikhil Sharma

July 23 (Reuters) -

The S&P 500 rose to a record high 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 U.S.

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 S&P 500 rose to an intraday record high, and the

benchmark has now climbed almost 8% in 2025.

"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 13% to 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 ) was last up

1.6%.

Tesla dipped 0.3% ahead of its quarterly report

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

vehicle maker's analyst conference call as they brace for 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 0.7%, with the Google parent

also set to report results after the close of trading.

The S&P 500 was up 0.59% at 6,347.10 points. The Nasdaq

gained 0.39% to 20,973.24 points, while the Dow Jones Industrial

Average was up 0.97% at 44,933.80 points, approaching its

December 4 record high.

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 11%

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

and revenue.

Texas Instruments ( TXN ) tumbled 12% 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 falling between 1% and 5%.

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 1.7-to-one ratio.

The S&P 500 posted 45 new highs and 2 new lows; the

Nasdaq recorded 84 new highs and 17 new lows.