US Stock Market Near Record Highs Amid Corporate Earnings Reports
The US stock market continues to hover near record highs as investors await corporate earnings reports and monitor oil prices. The S&P 500 edged down by 0.1%, remaining close to its record high reached on Thursday, while the Dow Jones Industrial Average fell 174 points or 0.3%. The Nasdaq Composite was relatively unchanged.
The rally is largely driven by strong corporate profits, with companies in the S&P 500 expected to post a 50% growth in earnings per share for the spring quarter compared to last year. Major retailers such as Home Depot, Target, and Walmart are among those still to announce their numbers during the coming week.
The retailers face pressure from elevated inflation and a weakening labour market, which may impact household incomes and consumer spending. Data released last week showed Americans reduced their spending at retailers in July compared to June, raising concerns about consumer behaviour.