US Stocks Hit Record Highs as Earnings Season Kicks Off
U.S. stocks reached new heights on Monday, with major indexes closing at record levels as investors eagerly await a flurry of earnings reports this week. The S&P 500 achieved its 46th record close of the year, while the Dow Jones Industrial Average surpassed the 43,000 mark for the first time.
The market rally comes as over 80 S&P 500 companies, including tech giant Netflix and investment bank Goldman Sachs, are set to report their quarterly earnings in the coming days. So far, 6% of S&P 500 companies have reported, with 74% beating profit estimates and 58% exceeding revenue expectations.
At the closing bell, the S&P 500 stood at 5,859.85, up 0.77%, while the Dow Jones Industrial Average climbed 0.47% to 43,065.22. The tech-heavy Nasdaq Composite also saw gains, rising 0.87% to 18,502.69.
Despite the market optimism, Federal Reserve Governor Christopher Waller urged caution regarding future interest rate cuts, citing a stable economy. His comments suggest a careful approach to monetary policy in the coming months. Markets anticipate a 25-basis point interest rate cut at the Fed’s remaining meetings this year.
In other market developments, Nvidia’s stock approached record highs, bolstered by positive analysis from Citi. Meanwhile, Tesla faced criticism from investor Ross Gerber following its robotaxi event, and Nike welcomed its new CEO, Elliott Hill, who began his tenure after starting as an intern in 1988.
Investors are also closely watching upcoming economic data releases, including retail sales and jobless claims, which could provide further insight into the health of the U.S. economy.
West Texas Intermediate crude oil fell 2.32% to $73.81 a barrel in the commodities market, while gold declined 0.32% to $2,667.70 an ounce. The cryptocurrency market saw Bitcoin surge 4.98% to $65,987.
As the current bull market in stocks enters its third year, analysts remain cautiously optimistic, with some noting potential overvaluation but advising against selling in the current climate.