Most U.S. stock indexes rose on Monday, continuing their momentum from last week’s gains.
The S&P 500 increased by 0.4% in morning trading, on track to surpass its record set last week. The Nasdaq composite climbed 0.7%, also heading for a new high as of 10 a.m. Eastern time. Meanwhile, the Dow Jones Industrial Average lagged behind, down 4 points or less than 0.1%, after closing above the 40,000 level for the first time on Friday.
Norwegian Cruise Line led the market, surging 6.1% after issuing financial forecasts that exceeded analysts’ expectations. The company reported growing demand for cruises, boosting its competitors as well. Carnival rose 4.6%, and Royal Caribbean Group increased by 4.5%.
Last week, all three major U.S. stock indexes set records, largely due to renewed hopes that the Federal Reserve might cut interest rates this year as inflation cools. Additionally, reports of stronger-than-expected profits from big U.S. companies helped lift stock prices.
This week, fewer top-tier economic reports are expected compared to last week’s headline showing inflation may be improving after a discouraging start to the year. However, some potentially market-moving corporate profit reports are on the calendar.
Notably, Nvidia will report its latest quarterly results on Wednesday. The company’s success amid the artificial intelligence technology boom has significantly contributed to the S&P 500’s gains over the past year. Analysts expect Nvidia’s revenue to have more than tripled to nearly $24.59 billion from a year ago. Nvidia’s stock was up 2.6%, bringing its year-to-date gain above 91%.
Several retailers are also set to report this week, including Lowe’s on Tuesday, Target on Wednesday, and Ross Stores on Thursday. These reports may provide insights into how U.S. household spending is holding up. High inflation, though not as severe as before, continues to pressure consumers, especially those with lower incomes.
Target’s stock fell 1.3% after announcing it would reduce prices on thousands of everyday essentials, such as milk and diapers, to help customers cope with higher costs.
In the oil market, crude prices were mixed after erasing morning gains following the death of Iran’s president in a helicopter crash. U.S. benchmark crude edged up 0.2% to $79.76 per barrel, while Brent crude, the international standard, slipped 0.2% to $83.83 per barrel.
In the bond market, yields were mostly steady. The yield on the 10-year Treasury rose to 4.43% from 4.42% late Friday, and the two-year yield remained at 4.83%.
The Federal Reserve will release minutes from its latest meeting on Wednesday, where it maintained its main interest rate at its highest level in over two decades. The hope is that the Fed can balance slowing the economy with high interest rates just enough to control inflation without triggering a recession.
Traders are betting with an 89% probability that the Fed will cut its main interest rate at least once this year, according to CME Group data.
Internationally, stock indexes were modestly higher across much of Asia and Europe.
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