NEW YORK (`) — U.S. stocks rose on Monday, extending gains from last week as technology companies once again took the lead.
The S&P 500 rose 52.95, or 1%, to 5,180.74. The Dow Jones Industrial Average rose 176.59, or 0.5%, to 38,852.27, and the Nasdaq Composite jumped 192.92, or 1.2%, to 16,349.25.
Tech stocks were at the forefront, with well-known ringleaders Nvidia and Super Micro Computer once again driving the market higher. They've had a few problems lately, but the hype surrounding artificial intelligence technology has sent Nvidia up 86.1% year to date, after a 3.8% gain on Monday. Super Micro is up 192.1% after gaining 6.1%.
Vistra, a power and energy generation company, rose 2.1% after investors learned it will be added to the widely followed S&P 500 index on Wednesday. Freshpet rose 10.4% after reporting better-than-expected results, thanks in large part to the company selling 30% more cat and dog food Berkshire Hathaway 1% added afterwards Warren Buffett The company announced its latest quarterly results over the weekend.
They helped offset a 9.7% decline for Spirit Airlines, which reported a slightly larger loss than expected. The airline said it faces increasing competition in many of its markets, particularly between the United States and Latin America.
Apple fell 0.9% after Berkshire Hathaway said it had reduced its stake in the tech giant.
Last week's market momentum continues on Monday. ` business correspondent Seth Suthel reports.
The US stock market has fluctuated wildly since hitting a record high at the end of March. It sank for weeks on fears that stubbornly high inflation would prevent, or at least delay, the Federal Reserve from making the interest rate cuts that Wall Street is demanding.
But late last week, markets experienced a burst of optimism after one Report of fewer than expected jobs. It suggested US economy could manage the tightrope of remaining strong enough to avoid a bad recession, but not so strong that it puts too much upward pressure on inflation.
David Mericle, an economist at Goldman Sachs, said he still expects two rate cuts this year in July and November Fed Chairman Jerome Powell At his press conference last week, he “strongly defended himself against the possibility of further rate hikes.”
The coming week will not feature such highly anticipated events as last week's Fed meeting or the monthly jobs report. The majority of companies in the S&P 500 have also already reported their results for the first three months of the year, according to FactSet, with more than three-quarters of them beating earnings expectations.
But there are a few more big names on the move this week, including The Walt Disney Co. and Uber Technologies.
In the bond market, which has recently dominated much of the stock market activity, government bond yields have remained largely stable.
The yield on the 10-year Treasury note fell to 4.49% from 4.50% late Friday. The yield on two-year government bonds, which is more in line with the Fed's expectations, has also changed relatively little.
Traders are betting on a nearly 89 percent chance that the Fed will cut interest rates at least once before the end of the year, according to data from CME Group. This is an increase from the 81.6% probability observed a week earlier. Lower interest rates would help ease pressure on the economy and financial system.
On the stock markets abroad, several exchanges were closed for public holidays. In France and Hong Kong, the indices rose relatively moderately. In Germany they rose by 1% and in Shanghai by 1.2%.
According to strategists at Deutsche Bank, corporate earnings reports were better than expected not only in the US, but also in Europe and Japan. After four straight declines, global earnings growth is on track for a second straight quarter of growth.
___
` writers Matt Ott and Zimo Zhong contributed.
Comments are closed.