U.S. stocks closed at record highs on Monday, with the S&P 500 and Nasdaq both reaching new all-time peaks as traders looked ahead to a busy week of earnings reports from major technology companies. The rally was broad-based, with gains in tech, consumer discretionary, and financial sectors leading the way.
"The market is pricing in strong results from the mega-cap tech names," said a senior market strategist. "Investors are optimistic that these companies can deliver despite rising interest rates and geopolitical tensions."
The Dow Jones Industrial Average also posted a modest gain, buoyed by strength in healthcare and industrials. Bond yields edged higher as the market priced in a potential rate hike at the next Federal Reserve meeting.
Earnings from Apple, Microsoft, Amazon, and Alphabet are due later this week, and analysts expect double-digit profit growth on average. However, some caution that high valuations leave little room for error.
"The bar is set very high," noted a portfolio manager. "Any disappointment could trigger a sharp pullback, but for now, the momentum is clearly bullish."
Meanwhile, oil prices retreated after recent highs, while gold held steady. The dollar index ticked up slightly against major currencies.