Malcolm Ethridge, Capital Area Planning Group managing partner, joins 'Closing Bell Overtime' to talk the week's record market action.

New York

The S&P 500 and Nasdaq have closed at new record highs, levels not seen since late 2021. Analysts note that while there is some speculative trading reminiscent of previous 'meme stock' surges, the current environment is less extreme and more diversified across different stocks. Investors who were previously concerned about market volatility are now presented with an opportunity to reassess their positions, as the market's strong performance may not be sustainable in the face of unresolved trade issues.

International investments, particularly in technology sectors, are highlighted as potential opportunities, with growth in regions such as the EU, Latin America, and Asia. However, caution is advised regarding direct exposure to Chinese markets due to regulatory and data transparency concerns. The ongoing investment in artificial intelligence by major U.S. tech firms is expected to continue supporting the sector's growth globally.

S&P 500 and Nasdaq close out week at fresh record highs

Well, for more on the market now, let's bring in Capital Area Planning Group Managing Partner and CNBC contributor Malcolm Etheridge. Malcolm, happy Friday. Well, let's step back. The S&P, again, hasn't closed at highs like this every day since November 2021, which is just before the index peaked and took years to recover. Are these highs, combined with the memish mood, a good sign or a bad one? Well, I think it's probably a good sign that the memish mood hasn't gotten as out of control as 2021, right? If you just look at the volume and a lot of those names you guys had up on the screen earlier, it's not nearly as close to what we saw in GameStop and AMC and a couple other names that got sprinkled in. For one thing, it is a little bit spread out, the bets that folks are making trying to hit that home run. But I also don't think that there's enough staying power in this meme mood, because what we're seeing, in my estimation, is investors who have done really well since Liberation Day in tech stocks taking those gains and then looking for another place to park those gains for a little while, while the market is at all time highs, like you just said. So I think what we're going to see is a return back to retail's favorite names, the Nvidia's, the Tesla's, names like that, about a month from now, where those meme stocks will cool off and we won't be talking about meme mania the same way we did in 21. Well, even those favorite names are pretty hot. What does a balanced portfolio mean right now in 2025 with the indices where they are? And what's the alternative to selling stocks and going to cash if you're queasy about these highs? Because trying to time the market usually does not end well. Yeah, John, it's almost a curse word right now, talking about a balanced portfolio or diversification. Folks just don't want to hear it, because the market is doing so well. And right now, everything is consistently going up and to the right. But I think, to your point, this is a great time. If you were a person who was extremely concerned back in March, April, saying things like, I don't like the way the market looks and I'm considering getting out, I think I might need to sell something, I think I might need to make a move, you're being given an opportunity to exit before things actually start to get choppy. And the trade scenarios aren't all solved, right? We were talking about 90 trade deals in 90 days or something like that. So the pause that's about to come undone in the next couple of weeks here might return us to a place where investors start to get worried again, and you see that trade coming back down. So I think anybody who is riding high right now, feeling great about the gains they're seeing in their portfolio, but just four months ago was extremely concerned about where do we go from here, because the market had fallen almost the perfect 20%. I think this is the gift that allows you a space to be getting out. So correct me if I'm wrong here, but I think if at the end of last year, as an investor, you had taken some off the table of your domestic stock exposure and said, hey, I'm going to buy international stocks instead, you might actually be doing better, and not all of it off the table, but some, you might actually be doing better than the general S&P, even though the S&P has been doing great. So are international stocks, even international ETFs, still a decent bet at this point, valuation-wise, based on what we see happening in trade and other economies? Yes, and I think you could even take the same trend that we're seeing here in the U.S., where for the first couple of years following ChatGPT's release, American tech companies were dominating with their large language models and what they were able to create. And then you saw with DeepSeek back in January, with open-source models, companies were able to create a lot more that allowed developers to do a lot with a little. And I think that theme is carrying through parts of the EU. It's carrying through parts of Latin America, even, and also some of the Asian countries. So I think being invested internationally in tech specifically is a great place to be, because it's unlikely that the U.S. continues its dominance in that space with the AI trade. However, we know that the AI trade has to continue to go, because you have companies like Ameta, for example, who's investing $80 billion a year, or Microsoft, $80 billion a year. We just heard from Alphabet that they're increasing their CapEx spend by $10 billion. So that definitely means that this trade is going to continue for some time. Looking at some emerging Asia-type funds, China used to be not just the tail that wags the dog, but maybe the whole dog with those kinds of funds, but doing pretty well, actually, right now. Can investors think of that as perhaps a place to put some money, emerging Asia around that whole region, to diversify away from high-valuation U.S. exposure? I wouldn't consider it an investment like you just said. I wouldn't consider it a place to put money longer term that you're expecting to see a reasonable amount of volatility. If this is speculation, then yes, by all means. China's still one of those places that we just never know whether we can trust the data that we're getting. We, as American investors, are legally not even allowed to invest directly in Chinese companies. With all of those dynamics underpinning ETFs and everything else that give you exposure to China, it's a great place to place a few trades just to see what happens. But it's not necessarily a great place to be allocating a meaningful amount of the dollars that you're going to need to rely on in retirement, say, for example.

Protesters gathered in front of the U.S. consulate in Edinburgh to oppose President Trump's visit to Scotland. Mr. Trump plans to host the U.K.'s Prime Minister Keir Starmer and the President of the European Union, Ursula von der Leyen, for trade talks at his personal properties.

Edinburgh

Demonstrators protest Trump's visit to Scotland

The Israeli military said Saturday that it will resume aid airdrops into Gaza and open humanitarian corridors for United Nations convoys amid increased international pressure and accounts of starvation-related deaths in the territory.

Tel Aviv-Yafo

Middle East Conflict

Israel says airdrops of aid into Gaza will begin

Tens of thousands flee as border fighting between Cambodia and Thailand intensifies — with no ceasefire in sight.

Preah Vihear Province

Cambodia calls for ceasefire with Thailand

Typhoon Co-May has moved away from the Philippines but many low-lying areas are still severely flooded. Three storms dumped a months’ worth of rain in a span of a week on nearly the entire country.

Manila

At least 30 killed in Philippines typhoon

EU Commission President Ursula von der Leyen has said she will meet US President Donald Trump on Sunday in Scotland to "discuss transatlantic trade relations."

Glasgow

Global Tariffs

Ursula von der Leyen to meet Donald Trump to discuss trade

President Trump signed an executive order Thursday aimed at dramatically changing how the U.S. approaches homelessness.

Washington

Trump signs executive order changing U.S. approach to homelessness

Typhoon Co-May has left a trail of destruction across the Philippines, making landfall in the country's northwestern region. Torrential rains and strong winds have battered towns and cities, damaging homes, roads, and farmland. At least 25 people have been reported dead.

Pangasinan

Philippines hit hard by Typhoon Co-May, dozens killed

Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump appeared on Friday to abandon Gaza ceasefire negotiations with Palestinian militant group Hamas, a day after withdrawing their delegations from talks.

Jerusalem

Netanyahu, Trump appear to abandon Gaza ceasefire negotiations

U.S. President Donald Trump is spending five days in Scotland visiting his luxury golf resorts. While the White House touts the economic impact, some locals say the developments have scarred the land and stirred controversy.

Trump visits Scotland to tour golf courses amid protests

The U.S. Department of Justice is set to meet with Ghislaine Maxwell, Jeffrey Epstein's convicted accomplice, amid mounting political pressure on President Donald Trump over his administration's handling of the Epstein case.

Ghislaine Maxwell to meet with U.S. Justice Dept. amid Epstein probe

Thailand and Cambodia exchanged heavy artillery fire for a second day on Friday (July 25) as their worst fighting in over a decade intensified and spread to new areas, despite international calls for a ceasefire.

Bangkok

Thailand, Cambodia exchange heavy artillery

France intends to recognise a Palestinian state in September at the UN General Assembly, President Emmanuel Macron said in hopes of bringing peace to the region, but the plan drew angry rebukes from Israel and the United States.

Macron says France will recognize Palestine as a state

Ukrainian President Volodymyr Zelensky has approved a draft bill to restore the independence of anti-corruption agencies, following nationwide protests and EU concerns over recent reforms that threatened their autonomy.

Ukraine Invasion

Zelensky approves anti-corruption bill after protests

Chinese and European Union leaders have met in Beijing for their first in-person summit since 2023, addressing a range of contentious issues amidst growing trade tensions. The talks, led by Chinese President Xi Jinping and EU officials Ursula von der Leyen and Antonio Costa, highlighted the complex nature of China-EU relations.

Beijing

China-EU summit ends in climate deal, talks strain over Ukraine

The United Kingdom and India have signed a trade agreement that will reduce tariffs on goods from textiles to whisky, cars and spices and allow more market access for businesses. British PM Keir Starmer hailed the agreement as a “landmark moment” for both countries.

London

UK, India sign free trade agreement during Modi visit

President Trump and Federal Reserve Chair Jerome Powell had a disagreement almost immediately as the two men set foot in the Fed's headquarters in Washington to survey an extensive renovation project on two of the reserve's buildings. Nancy Cordes has more.

Trump, Powell clash during tour of Federal Reserve renovations

Hulk Hogan, the legendary professional wrestler whose real name was Terry Bollea, died on Thursday at the age of 71, according to World Wrestling Entertainment.

Clearwater

Wrestling legend Hulk Hogan dead at the age of 71, WWE says

At least 12 were killed as a Thai-Cambodian border dispute escalated into deadly clashes on Thursday (July 24).

Surin

Thailand bombs Cambodian targets as border clash escalates

According to preliminary data, 43 passengers, including five children, and six crew members were on board.

Tynda

Passenger plane crashes in Russia, killing all 49 people on board

Pro wrestling legend Hulk Hogan has died, World Wrestling Entertainment said in a statement on social media. He was 71. CBS News' Shanelle Kaul has more.

Hulk Hogan dies at 71, WWE says

The Wall Street Journal reports that former Attorney General Pam Bondi told President Trump his name appeared in the Epstein files. The White House denies wrongdoing.

Report: Trump was briefed on mentions in Epstein files

Columbia University will pay $200 million to resolve federal claims it failed to stop harassment of Jewish students during campus protests. The Trump administration had suspended the school's access to $400 million in funding.

Columbia settles for $200 million over antisemitism claims

Israel issued a statement indicating that Prime Minister Benjamin Netanyahu has asked the Gaza negotiating team to return to Israel for ceasefire talks. CBS News' Ramy Inocencio reports.

Israel brings back Gaza negotiating team for ceasefire 'consultations'

Also in the settlement is an agreement to ask prospective international students “questions designed to elicit their reasons for wishing to study in the United States,” and establishes processes to make sure all students are committed to “civil discourse.”

Columbia University to pay more than $220M in deal with Trump

There are several developments in the cases involving Kilmar Abrego Garcia, the migrant in ICE custody whom the Trump administration wrongly deported. CBS News' Katrina Kaufman reports.

Nashville

Kilmar Abrego Garcia to remain detained following new court orders

Dr. Salvador Plasencia admitted to distributing ketamine to actor Matthew Perry before his 2023 overdose. He is the fourth person to plead guilty in the case and faces up to 40 years in prison.

Los Angeles

Doctor pleads guilty in Matthew Perry death case

While both sides acknowledged progress on humanitarian issues, talks on a full ceasefire remain stalled. Turkish Foreign Minister Hakan Fidan called for "result-oriented negotiations" to end the devastating war.

Istanbul

Russia and Ukraine conclude third round of peace talks in Istanbul

A passenger plane has crashed in southeastern Russia with up to 49 people onboard. Emergency services say the An-24 aircraft took off from the city of Khabarovsk and was heading to the town of Tynda. Wreckage was found on a mountainside around 15 kilometres from the flight's intended destination.

Russian passenger plane with 49 on board crashes

Ukraine's President Volodymyr Zelenskiy vowed to retain the independence of anti-corruption agencies, bowing to pressure from the first wartime street protests and rare rebukes from European allies.

Kyiv

Zelenskiy to protect anti-corruption agencies, bows to protests

U.S. President Donald Trump's name is among the many appearing in the Epstein files, according to the Wall Street Journal, and he was told as much earlier this year by the U.S. Justice Department.

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