U.S. Stocks Edge Towards Records as Wall Street Momentum Continues
NEW YORK (AP) — The U.S. stock market is on the brink of reaching new records as Wall Street’s momentum keeps driving it upward. On Monday, the S&P 500 rose 0.3% to 5,631.22, just shy of its all-time high set last week. The Dow Jones Industrial Average climbed 0.5% to 40,211.72, setting its own record, while the Nasdaq composite added 0.4% to 18,472.57.
The market’s positive performance is largely attributed to expectations that inflation is slowing enough to prompt the Federal Reserve to ease interest rates soon. Some of the best-performing areas were those that do well when former President Donald Trump’s chances for election look better. Trump Media & Technology Group, the company behind Trump’s Truth Social platform, saw a significant increase in its stock price.
Bitcoin also rose above $63,000 after Trump, known for his crypto-friendly stance, survived an assassination attempt over the weekend. Analysts believe that Trump’s defiance following the attack could boost his support in polls, similar to what happened with President Ronald Reagan in 1981.
Yields for longer-term Treasurys rose higher than shorter-term ones, with the 10-year Treasury yield climbing to 4.22%. Stocks of big financial companies, which could benefit from a lighter regulatory touch from a Republican administration, also saw gains. JPMorgan Chase and Goldman Sachs were among the top performers.
Investors are optimistic about the upcoming earnings reporting season, with analysts forecasting overall growth of 9.3% for S&P 500 companies from a year earlier. This positive outlook, combined with encouraging reports on inflation, has been driving U.S. stocks towards record highs.
Despite the market’s strong performance, some skeptics remain cautious, citing concerns about high valuations and the possibility of slower economic growth in the second half of the year. However, Federal Reserve Chair Jerome Powell reiterated on Monday that the Fed will not signal any imminent interest rate cuts.
In international markets, Chinese indexes were mixed following slower-than-expected economic growth in China’s latest quarter. Stock indexes in Europe were mostly lower.
Overall, the U.S. stock market continues to show resilience and upward momentum, fueled by positive economic indicators and expectations of policy changes ahead of the upcoming election cycle.
