S&P 500 Notches Record as Investors Eye Big Tech Earnings

© Reuters.

By Yasin Ebrahim

Investing.com – All three major averages clinched record highs Monday after cutting intraday losses ahead quarterly earnings from big tech and further clues on  monetary the Federal Reserve due this week. 

The rose 0.24%, to close at a record high of 4,422. The gained 0.24%, or 82 points to close a record of 35,144.12. The Nasdaq closed at record of 14,840.70.

Large cap tech stocks were mostly positive as investors piled into the sector, which has gained about 14% since its May slump, ahead of quarterly results from the Fab 5 due this week. Apple (NASDAQ:), Microsoft (NASDAQ:) and Alphabet (NASDAQ:) report quarterly results on Tuesday, while Facebook (NASDAQ:) and Amazon.com (NASDAQ:) deliver results  on Wednesday and Thursday respectively.

The broader market was lifted by a climb in energy stocks as oil prices recovered some losses from the lows of the day.

Oil prices were steady on Monday as the spread of the Covid-19 Delta variant stoked fears over future fuel demand, though crude supply looks set to be tight through the rest of the year.

As well as earnings, the Federal Reserve’s monetary policy decision and commentary from Fed chairman Jerome Powell are also likely to drive market action later this week.

“[T]he Fed is scheduled to meet, releasing its latest policy decision on Wednesday. Rates are largely expected to remain unchanged at 0.00%-0.025%. The Committee’s asset purchase program is also expected to remain steady at $120 billion. The highlights, therefore, will come from the statement as well as the press conference,” Stifel said in a note.

See also  Shake Shack Gains As Goldman, Wedbush Upgrade Citing Room For Growth  

With stocks hovering at record highs, some on Wall Street see wild swings coming for the broader market, but ultimately continue to back the bull market.

“Higher inflation, rising interest rates, and a less accommodative Federal Reserve could lead to short-term market volatility, but we expect the bull market to remain intact,” Wells Fargo (NYSE:) said in a note.

Wall Street had started the session on the back foot as fears sentiment was soured by a further regulatory crackdown from China on companies in the mainland. Beijing introduced new rules over the weekend taking aim at the education sector, prohibiting them from turning a profit or raising capital on stock markets. 

In other news, crypto-related stocks including Marathon Digital (NASDAQ:), Riot Blockchain (NASDAQ:), MicroStrategy (NASDAQ:) and Square were boosted by surge in . The sharp uptick in bitcoin was attributed to short-covering amid speculation that Amazon.com is set to make a foray into the crypto industry.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

See also  Biden to welcome Japan's Suga as first guest and key ally in China strategy



Please enter your comment!
Please enter your name here