US stocks made modest gains on Monday, propelling the S&P 500 toward another record high. Investors, buoyed by a positive outlook on the economy, eagerly anticipate upcoming earnings reports for indications of a potential artificial intelligence (AI) boom in the tech sector.
The S&P 500 (^GSPC) edged up by 0.3%, building on the momentum from its first record close since January 2022 on Friday. The Dow Jones Industrial Average (^DJI) saw a marginal increase of around 0.2%, while the Nasdaq 100 (^NDX), dominated by tech stocks, surged by 0.5%.
Tech shares, fueled by the power of AI, have played a pivotal role in lifting stocks from their early-2024 stagnation, pushing major indexes into positive territory for January. The focus now turns to the quarterly results of tech giants like Netflix (NFLX) and Tesla (TSLA) later this week, with market watchers keenly observing how tech earnings may influence short-term market trends.
Against this backdrop, Federal Reserve officials are expected to maintain a low profile leading up to the Jan. 30 policymakers’ meeting. However, market dynamics may be influenced by readings on GDP and the Fed’s preferred inflation gauge later in the week, providing insights into the ongoing debate on when the Fed might pivot to interest rate cuts.
Shifting attention to individual stocks, Boeing (BA) faced increased pressure following the FAA’s recommendation for airlines to conduct checks on another class of 737 jet, sharing the same door plugs as the MAX 9 that experienced a midair blowout.
In contrast, Archer-Daniels-Midland (ADM) witnessed a 15% decline in shares on Monday. The agricultural trading giant took a hit as it placed its CFO on leave and revised its earnings outlook amid an investigation into its accounts.
As the positive momentum continues, all eyes remain on the S&P 500 as it charts a course toward another record high, reflecting the ongoing optimism in the market.
Source: Yahoo Finance
