*

Tariffs on Japanese autos cut to 15% from 27.5%

*

Thermo Fisher surges after beating Street estimates

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Texas Instruments ( TXN ) slumps as tariff uncertainty hits demand

*

Tesla reports after the bell, investors brace for revenue

fall

(Updates with close of trading)

By Noel Randewich and Nikhil Sharma

July 23 (Reuters) - The S&P 500 notched a record high

close 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 benchmark S&P 500 has now climbed about 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 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 ) climbed and fueled

gains in the S&P 500 and Nasdaq.

Tesla swung between losses and gains 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, with the Google parent also set

to report results after the close of trading.

According to preliminary data, the S&P 500

gained 49.93 points, or 0.80%, to end at 6,359.91 points,

while the Nasdaq Composite gained 127.33 points, or

0.61%, to 21,023.67. The Dow Jones Industrial Average

rose 511.35 points, or 1.15%, to 45,013.79.

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 after

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

revenue.

Texas Instruments ( TXN ) tumbled 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 ground.

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.