US stocks made modest gains on Monday, propelling the S&P 500 toward yet another record high. Investor sentiment turned more optimistic about the economy, with a keen eye on upcoming earnings, particularly in the tech sector where signs of an AI boom are anticipated.
The S&P 500 (^GSPC) edged up by 0.3%, building on the momentum from its first record close since January 2022 on Friday. The Dow Jones Industrial Average (^DJI) saw a modest increase of approximately 0.2%, while the Nasdaq 100 (^NDX), dominated by tech stocks, experienced a more substantial rise of 0.5%.
Tech shares, energized by advancements in AI, played a pivotal role in lifting the market from its early-2024 sluggish phase, steering major indexes into positive territory for January. The focus now shifts to the upcoming quarterly results from tech giants such as Netflix (NFLX) and Tesla (TSLA). These outcomes are expected to provide crucial insights into the trajectory of tech earnings and, consequently, influence the short-term direction of the market.
Federal Reserve officials, whose statements have had a notable impact on the stock market, are anticipated to maintain a low profile leading up to the Jan. 30 policymakers’ meeting. However, market watchers eagerly await key economic indicators, including GDP readings and the Fed’s preferred inflation gauge later in the week. These data points could offer valuable insights into the ongoing debate surrounding the timing of the Fed’s potential shift to interest rate cuts.
On the individual stock front, Boeing (BA) faced increased pressure as the FAA recommended airlines conduct checks on another class of 737 jets, sharing door plugs with the MAX 9 variant that experienced a midair blowout.
Conversely, Archer-Daniels-Midland (ADM) witnessed a sharp decline of about 15% on Monday. The agricultural trading giant took a hit as it placed its CFO on leave and revised its earnings outlook amid an investigation into its financial accounts.
In conclusion, with the S&P 500 approaching a potential record high, investor optimism and anticipation for a tech-driven boost underscore the positive trajectory in the current market landscape.
Source: Yahoo Fi8nance
