The S&P 500 and Dow Jones Industrial Average reached new record highs on Monday as investors awaited key corporate earnings reports. The S&P climbed 0.77% to 5,859.85, while the Dow rose 201.36 points to 43,065.22, closing above 43,000 for the first time. The Nasdaq Composite also added 0.87%, closing at 18,502.69. Technology stocks led the gains, with McDonald’s, UnitedHealth Group, and Apple boosting the Dow. Bank of America, Goldman Sachs, and Johnson & Johnson are among the companies set to report earnings this week. The market had rallied last week with positive banking results, and 30 S&P 500 companies have exceeded earnings expectations by an average of 5% so far. Despite the market’s recent highs, investors remain cautious due to political uncertainty, rising Treasury yields, and geopolitical risks. Baird investment strategist Ross Mayfield suggests potential volatility ahead of the election. The S&P 500 has gained almost 23% this year, with the benchmark rallying 63% since hitting a low in 2022. Treasury yields have also risen, surpassing 4.1% last week. Overall, investors remain bullish on the market in the long term, anticipating lower rates, economic stability, and earnings growth. The bond market was closed on Monday for Columbus Day.
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