S&P 500, Nasdaq close at record highs ahead of tech earnings wave
The Nasdaq's record high close confirmed the end of an 11% correction in the index that began after its previous record high close on February 12
The S&P 500 and Nasdaq closed at record highs on Monday, fueled by Tesla Inc ahead of the electric car maker's quarterly report, the first of several this week from heavyweight growth companies.
The Nasdaq's record high close confirmed the end of an 11% correction in the index that began after its previous record high close on February 12.
Tesla (TSLA.O) advanced ahead of its report due after the bell, with analysts expecting the company to show a rise in first-quarter revenue following record deliveries.
Companies that constitute about 40% of the S&P 500's market capitalization report from Tuesday through Thursday, including Microsoft Corp (MSFT.O), Google parent Alphabet Inc (GOOGL.O), Apple Inc (AAPL.O) and Facebook Inc (FB.O). Shares of the companies also rose.
Most of the 11 major S&P 500 sectors climbed, with the energy index (.SPNY) among the top performers, while utilities (.SPLRCU) and consumer staples (.SPLRCS) declined.
Of 124 companies in the S&P 500 that have reported so far, 85.5% have topped analysts' earnings estimates, with Refinitiv IBES data now predicting a 34.3% jump in profit growth.
"We're way above the average for firms reporting earnings above estimates. More important than the fact that they are beating on estimates is that they are raising their expectations and outlooks going forward, and that's giving the markets a nice boost," said Sal Bruno, chief investment officer at IndexIQ.
Investors will monitor a two-day Federal Reserve meeting beginning Tuesday, with the US central bank expected to shine some light on whether the employment landscape has affected its plan to leave interest rates near zero for an extended time and to continue buying $120 billion in bonds each month.
Also on investors' radar is a reading of first-quarter gross domestic product later this week to gauge the pace of economic recovery in the United States.
Unofficially, the Dow Jones Industrial Average (.DJI) fell 0.18% to end at 33,981.97 points, while the S&P 500 (.SPX) gained 0.18% to 4,187.74.
The Nasdaq Composite (.IXIC) climbed 0.87% to 14,138.78.
Market participants are also watching out for any fresh developments on US President Joe Biden's tax plan after reports last week said he would seek to nearly double the capital gains tax to 39.6% for wealthy individuals. read more
Cryptocurrency and blockchain-related firms, including Riot Blockchain (RIOT.O) and Marathon Patent Group (MARA.O), surged as bitcoin snapped five straight days of losses.
