NEW YORK (AP) — U.S. stocks advanced to record highs Monday as Wall Street the momentum continues to the top.
The S&P 500 index rose 0.5% in afternoon trading and is on track to surpass its all-time high set Wednesday. It just had its 10th week of gains in the past 12 weeks, largely on expectations that inflation slows enough to convince the Federal Reserve to Lower Interest Rates Soon.
The Dow Jones Industrial Average was up 261 points, or 0.7%, also on track to set a record, as of 2:36 p.m. ET, while the Nasdaq Composite was up 0.5%.
Some of the best-performing sectors in the market are those that do best when former President Donald Trump’s chances of being elected look brighter. Trump Media and Technology Groupthe company behind Trump’s Truth Social platform, jumped 36.5%. Bitcoin climbed back above $63,000 after Trump, who has run as a candidate in favor of cryptocurrenciesSurvived an assassination attempt during the weekend.
According to Isaac Boltansky, director of political research at BTIG, Trump could see an immediate surge in support in the polls, as President Ronald Reagan did in 1981, and “Trump’s defiance after the attack” could be the defining image of this electoral cycle.”
Long-term Treasury yields have also risen relative to short-term yields, with the 10-year Treasury yield climbing to 4.22% from 4.19% last Friday. Something similar happened after last month’s rate hike. debate between Trump and President Joe Biden, as traders made moves in anticipation of a Republican victory in November that could ultimately mean policies that increase the US government debt.
Shares of big financial companies, which could benefit from regulatory relief from a Republican administration, also helped lift the market. JPMorgan Chase climbed 2.7% and was one of the most powerful forces behind the S&P 500’s rise.
Investment bank Goldman Sachs rose 2% after reporting higher profits and revenues for the last quarter than analysts expectedBlackRock, the asset manager behind iShares exchange-traded funds, added 0.5% after beating profit forecasts but missing revenue.
Expectations are generally high heading into earnings season, which unofficially kicked off last week. Analysts expect S&P 500 companies to grow 9.3% from a year earlier, according to FactSet. That would be the strongest growth in more than two years.
Those expectations were one of the forces that pushed U.S. stocks to record highs. So were encouraging reports on inflation, which showed a slowdown enough that most Wall Street analysts expect the Federal Reserve to begin cutting its key interest rate in September.
For about a year nowThe Fed kept its key interest rate at its highest level in more than two decades. Lower interest rates would relieve pressure that has built up on the economy due to the high cost of borrowing to finance consumer spending. buy housescars or anything on credit cardFed officials, however, have said They want to see “more good data” on inflation before acting.
In a speech to the Economic Club of Washington, Federal Reserve Chairman Jerome Powell said: Again On Monday, he gave no word on when the Fed might cut interest rates. But he also said Fed officials were aware of the risks of waiting too long or too short. Cuts that are too late could push the already slowing U.S. economy into recession, while cuts that are too aggressive could allow inflation to accelerate again.
Despite the seemingly unstoppable run of the U.S. stock market, some skeptics remain cautious about prices they consider too high. The S&P 500 has already jumped more than 18% this year and has broken 37 all-time records.
Barry Bannister, chief equity strategist at Stifel, acknowledged that he had at least anticipated an imminent “correction” in stock prices earlier this year, but he still warns of the possibility of a 10% decline soon.
He said inflation could persist and the U.S. economy could grow more slowly than expected in the second half of the year. Bannister called that combination “moderate stagflation” and would be particularly damaging to the high-growth stocks that have been Wall Street’s biggest stars.
On Wall Street, U.S.-listed shares of Burberry fell 16.1% after the British luxury fashion house announced appointed Joshua SchulmanFormer CEO of Michael Kors and Coach, Schulman has been named CEO of the brand. Schulman, 52, replaces Jonathan Akeroyd.
The surprise announcement comes as Burberry said its first-quarter revenue was down 21% and it suspended its dividend.
Macy’s fell 12% after ending months of talks over a possible acquisition by two investment firms. The retailer said the companies’ latest offer was not high enough to be convincing and may also not have been fully funded.
In overseas stock markets, Chinese indices were mixed after China reported Hong Kong’s economy grew at a slower-than-expected pace in the latest quarter as the ruling Communist Party opened a 10-year policy-making meeting. Hong Kong’s Hang Seng Index fell 1.5%, while Shanghai stocks gained 0.1%.
Stock market indices were mostly down in Europe.
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AP Business reporters Matt Ott and Elaine Kurtenbach contributed to this report.
News Source : apnews.com
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