Key points:

  • The S&P 500 index hit a second straight record high as technology stocks extended recent gains.
  • Investors were looking to upcoming corporate earnings reports for clues about this year’s earnings outlook.
  • The Dow Jones Industrial Average rose 0.36%, the S&P 500 added 0.22% and the Nasdaq Composite added 0.32%.

The S&P 500 climbed to a fresh record high on Monday, boosted by a rally in technology stocks. Investors are eagerly awaiting upcoming corporate earnings reports for insights into the prospects for earnings growth this year.

Friday’s data confirmed that the S&P 500 has been in a bull market since bottoming out on October 12, 2022, according to a widely used indicator.

The Dow Jones Industrial Average rose 0.36% to 38,001.81, the S&P 500 gained 0.22% to 4,850.43, and the Nasdaq Composite climbed 0.32% to 15,360.29.

Traders have toned down their expectations for a rate cut of at least 25 basis points in March, now putting the likelihood of a reduction at 53% in May, according to the FedWatch Tool from CME.

The market is waiting for company reports

With several prominent companies set to release earnings reports this week, investors are closely monitoring the market. Netflix, Tesla, Abbott Laboratories, Intel, and Johnson & Johnson are among the companies expected to provide updates.

Next week, the tech industry is eagerly awaiting results from major players like Microsoft and Apple.

The semiconductor index reached a new all-time high on Tuesday, surging by 0.3%. The Nvidia index also set a new record, climbing by 0.3%. Nvidia has emerged as a frontrunner in the field of artificial intelligence technologies. The technology-heavy S&P 500 index .SPLRCT also gained 0.4%.

Investors and traders are also keeping an eye on this week’s Personal Consumer Expenditures (PCE) report, S&P’s global PMI numbers, and preliminary fourth-quarter GDP data for insights into the Federal Reserve’s upcoming policy decisions.

 

Results

The overall trading volume on U.S. stock exchanges surpassed the 11.42 billion average of the past 20 trading days, reaching an impressive 11.86 billion shares.

This surge in activity was accompanied by a significant rise in new 52-week highs, with the S&P 500 recording 82 new highs and 3 new lows and the Nasdaq Composite setting 161 new highs and 130 new lows.