NEW YORK (AP) — U.S. stocks fell Monday on Wall Street The momentum continues Turn it upwards.
The S&P 500 rose 15.87 points, or 0.3%, to 5,631.22, just below the all-time high it reached last week. It has risen for 10 of the past 12 weeks, driven primarily by Inflation is slowing Enough to convince Federal Reserve eases interest rates soon.
The Dow Jones Industrial Average rose 210.82 points, or 0.5%, to 40,211.72, a new all-time high, while the Nasdaq Composite rose 74.12 points, or 0.4%, to 18,472.57, just shy of its all-time high.
Among the market’s best-performing sectors were those that did best as former President Donald Trump’s election chances increased. Trump Media & Technology GroupThe company behind Trump’s Truth Social platform surged 31.4%. Bitcoin is the cryptocurrency that Trump has branded himself as. Crypto-Friendly Candidatessurvived Assassination attempt On the weekend.
Isaac Boltanski, director of policy research at BTIG, said Trump could quickly see his approval rating soar in the polls, just as President Ronald Reagan did in 1981. He added that “Trump’s defiant attitude after the attacks is a clear sign of the rifts in the U.S. and the U.S. economy.” This could become an iconic image for this election cycle..”
Yields on longer-term Treasury notes also rose more than shorter-term ones, with the 10-year Treasury yield rising to 4.22% from 4.19% late on Friday. Discussion The final stretch between President Trump and President Joe Biden came as traders made moves to predict a Republican landslide victory in November. Increase the US government debt.
Shares of big financial companies that could benefit from deregulation by a Republican administration also led the market. JPMorgan Chase & Co. rose 2.5%, one of the strongest drivers of the S&P 500’s gains.
Investment bank Goldman Sachs rose 2.6% after reporting earnings. Profits and revenue for the latest quarter beat analyst expectations.Asset manager BlackRock, which runs the iShares exchange-traded fund, fell 0.6 percent after profit beat expectations but revenue fell slightly short.
Anticipation is building for the current earnings season, which unofficially got underway last week, with analysts predicting overall growth among S&P 500 companies will be 9.3% year-over-year, according to FactSet, which would be the strongest growth in more than two years.
Those forecasts have been one of the driving forces behind U.S. stocks hitting record highs, along with upbeat reports on inflation, which has slowed enough that most on Wall Street expects the Federal Reserve to start cutting its key interest rate in September.
About 1 yearThe Federal Reserve is keeping its key interest rate at its highest level in more than two decades, and lowering it would ease pressure that has built up in the economy due to higher borrowing costs. Buy a housecar, or credit cardBut Fed officials He said They want to see “better data” on inflation before taking action.
Federal Reserve Chairman Jerome Powell said this in a speech to the Economic Club of Washington: Also He wouldn’t send any signals on Monday about when the Fed might cut rates, but he also said Fed officials understand the risks of both waiting too long and waiting too short: Cutting rates too late could tip the U.S. economy into recession, while cutting rates too hard could allow inflation to accelerate again.
The U.S. stock market rally seems unstoppable, but skeptics remain cautious, saying prices are too high. The S&P 500 has already risen 18% this year and has set 37 new all-time highs.
Stifel chief equity strategist Barry Bannister acknowledged that the bank had at least early indications earlier this year that a stock “correction” was imminent, but still warned of a possible 10% drop down the road.
He said high inflation could persist and that he expects the U.S. economy to grow slower than expected in the second half of the year. Such a situation would constitute “moderate stagflation,” Bannister said, and could be particularly damaging to the high-growth stocks that have driven Wall Street.
Among individual stocks, U.S.-listed shares of British luxury fashion house Burberry fell 16.1%. Joshua Shulman appointedBurberry has appointed John McClellan, the former head of Michael Kors and Coach, as its new CEO. The unexpected announcement came just after Burberry said its first-quarter profits fell 21% and that it was suspending its dividend.
Macy’s Inc. fell 11.7% after two investment firms ended talks to buy the company after months of negotiations. The company said the latest proposal was Convincingly high It may also be that they are not adequately funded.
On overseas stock markets, China’s stock indexes were mixed. China reports Hong Kong’s economy expanded at a slower pace than expected in the latest quarter as the ruling Communist Party held its first policy meeting in a decade. The Hang Seng Index fell 1.5 percent, while the Shanghai stock market rose 0.1 percent.
Stock indexes were mostly lower in Europe.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
