U.S. Stock Market Nears Record High Amid Strong Earnings

The U.S. stock market is nearing an all-time high, with the S&P 500 up 0.6% and poised to surpass its August record. Despite ongoing concerns about war, inflation, and rising bond yields, the S&P 500 has surged 23% since its March low. The Dow Jones Industrial Average gained 201 points, or 0.4%, while the Nasdaq composite added 0.5% to its own record set the day before.

While fears of war and inflation have materialized, driving up oil prices and bond yields, U.S. companies have continued to report strong profits. Lamb Weston, a frozen potato products company, reported higher-than-expected earnings and raised its annual profit forecast, sending its stock up 11.1%. Analysts predict S&P 500 companies will report nearly 30% earnings growth year-over-year, marking the third straight quarter of over 25% growth.

Stocks faced less pressure as Brent crude oil prices steadied, falling 0.1% to $100.21 per barrel. The 10-year Treasury yield also dropped slightly to 5.28%. AI-related stocks, such as Constellation Energy, surged 15% after announcing a deal to supply Google with electricity. Option Care Health jumped 33.1% following news of its acquisition by CD&R and McKesson for $5.8 billion.

Globally, European and Asian markets showed mixed movements. Japan’s Nikkei 225 rose 1.1%, Hong Kong’s Hang Seng climbed 1%, while South Korea’s Kospi fell 0.9%. In Europe, protests over school funding continued amid bond market volatility.