Nasdaq Hits Record High as Earnings Season Approaches
The Nasdaq reached a record high close on Monday, driven by gains in Nvidia and Microsoft. Investors were encouraged by a dip in oil prices and anticipation of upcoming quarterly earnings reports. The Nasdaq's surge marked its second day of strong gains following weaker-than-expected jobs data on Friday, which reduced expectations of an interest rate hike by the Federal Reserve this month.
The S&P 500 also rose, nearing its own record high set in August. Nvidia climbed 2.1%, reaching a record-high close and boosting its market value to US$5.76 trillion. Microsoft added 1.5%, while Meta Platforms and Tesla each gained about 2%. Oil prices slipped due to increased exports from the Middle East and pledges from the Group of Seven nations to boost supplies.
Analysts noted that with a light economic data calendar and earnings season approaching, investors were focusing on positive indicators like lower energy prices. The S&P 500 ended the session up 0.66% at 7,773.95 points, while the Nasdaq gained 1.05% to 27,477.31 points. The Dow Jones Industrial Average rose 0.18% to 51,267.90 points.
Earnings season for the third quarter begins next week with reports from major US banks. Analysts expect S&P 500 earnings to jump over 30% year over year, largely due to AI-related stocks. The probability of a Fed rate hike in October has dropped to 24%, down from 70% a week ago.