Stocks Near Record Highs as Earnings Season Approaches

The U.S. stock market is nearing an all-time high, with the S&P 500 climbing 0.6% on Tuesday, surpassing its previous record set in August. Despite ongoing concerns about war, inflation, and rising bond yields, the S&P 500 has surged 23% since its low in late March. The Dow Jones Industrial Average gained 0.4%, while the Nasdaq composite added 0.5% to its own record high from the day before.

Despite economic challenges, U.S. companies have continued to report strong profits, supporting the market's resilience. Lamb Weston, a frozen food company, reported higher-than-expected profits and revenue for its latest quarter, raising its full-year profit forecast. Analysts anticipate nearly 30% earnings growth for S&P 500 companies in the third quarter, marking the third consecutive quarter of over 25% growth.

Oil prices have eased slightly, with Brent crude falling 0.1% to $100.21 per barrel, reducing some inflationary pressure. The yield on the 10-year Treasury also dipped to 5.28%. In the tech sector, Constellation Energy jumped 15% after striking a deal to supply electricity to Google, driven by the demand from AI data centers. Option Care Health soared 33.1% following a $5.8 billion acquisition by CD&R and McKesson.

Internationally, European markets saw modest gains, while Asian markets were mixed, with Japan and Hong Kong rising, and South Korea dropping. Protests in France over education funding also made headlines.