NEW YORK (AP) — U.S. stocks fell Monday on Wall Street The momentum continues Turn it upwards.
The S&P 500 rose 0.6% in morning trading, on track to surpass the all-time high it hit on Wednesday. It has risen in 10 of the past 12 weeks, driven primarily by: Inflation is slowing Enough to convince Federal Reserve eases interest rates soon.
The Dow Jones Industrial Average was up 180 points, or 0.5%, as of 10:40 a.m. Eastern time, also on pace to hit a record high, while the Nasdaq Composite Index was up 1%.
Some of the market’s best performing sectors were those that performed best when former President Donald Trump’s reelection prospects grew. Trump Media & Technology Group, which runs Trump’s Truth social platform, surged 32.1%. Bitcoin surged above $62,000 after Trump described himself as “President Trump.” Crypto-Friendly Candidatessurvived Assassination attempt On the weekend.
Isaac Boltanski, director of policy research at BTIG, said Trump could quickly see his approval rating soar in the polls, just as President Ronald Reagan did in 1981. He added that “Trump’s defiant attitude after the attacks is a clear sign of the rifts in the U.S. and the U.S. economy.” This could become an iconic image for this election cycle..”
Yields on longer-term Treasury notes also rose more than shorter-term ones, with the 10-year Treasury yield rising to 4.22% from 4.19% late on Friday. Discussion The final stretch between President Trump and President Joe Biden came as traders made moves to predict a Republican landslide victory in November. further increase the US government’s debt.
Shares of major financial companies that could benefit from deregulation by the Republican administration were mixed after their latest earnings reports.
Investment bank Goldman Sachs rose 0.7% after reporting earnings. Profits and revenue for the latest quarter beat analyst expectations.Asset manager BlackRock, which runs the iShares exchange-traded fund, fell 0.5 percent after profit beat expectations but revenue fell slightly short.
Expectations are generally high heading into the current earnings season, which unofficially began last week. Analysts are forecasting 9.3% year-over-year growth for S&P 500 companies, according to FactSet, which would be the strongest growth in more than two years.
Such forecasts have been one of the driving forces behind U.S. stocks hitting record highs, along with upbeat reports on inflation, which are showing signs of slowing enough that most on Wall Street expects the Federal Reserve to start cutting its key interest rate in September.
About 1 yearThe Federal Reserve is keeping its key interest rate at its highest level in more than two decades, and cutting rates would ease pressure that has built up in the economy due to higher borrowing costs. Buy a housecar, or credit cardBut Fed officials He said They want to see “better data” on inflation before taking action.
Chairman of the Federal Reserve System Jerome Powell He is scheduled to speak at the Economic Club of Washington later Monday afternoon.
The US stock market rally seems unstoppable, but skeptics remain cautious, saying prices are too high. The S&P 500 is up 18.5% this year and has set 37 new all-time highs.
Stifel chief equity strategist Barry Bannister acknowledged that he had predicted at least a stock price “correction” was imminent earlier this year, but he still warned of the possibility of a 10% drop down the road.
Bannister said high inflation is likely to persist and that he expects the U.S. economy to grow slower than expected in the second half of the year. Such a situation would constitute “moderate stagflation,” he said, and would particularly hurt Wall Street’s biggest stars: high-growth stocks.
On Wall Street, Burberry, the British luxury fashion house, Joshua Shulman appointedThe former Michael Kors and Coach boss will take over as CEO. The 52-year-old will succeed Jonathan Akerroyd.
The unexpected announcement came shortly after Burberry said its first-quarter profits fell 21% and that it was suspending its dividend.
Macy’s Inc. fell 13.9% after two investment firms ended talks to buy the company after months of negotiations. The company said the latest proposal was Convincingly high It may also be that they are not adequately funded.
On overseas stock markets, China’s stock indexes were mixed. China reports Hong Kong’s economy expanded at a slower pace than expected in the latest quarter as the ruling Communist Party held its first policy meeting in a decade. The Hang Seng Index fell 1.5 percent, while the Shanghai stock market rose 0.1 percent.
Stock indexes were mostly lower in Europe.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
