NEW YORK (AP) — U.S. stocks are on an upward trend Monday, nearing record highs as Wall Street continues to gain momentum.
The S&P 500 was up 0.5% in early trading, poised to surpass its previous all-time high set last Wednesday. The index has seen gains in 10 of the last 12 weeks, largely driven by expectations of easing inflation leading the Federal Reserve to consider lowering interest rates.
By 9:35 a.m. Eastern time, the Dow Jones Industrial Average had risen 273 points, or 0.7%, on track for a record, and the Nasdaq composite was up by 0.6%.
Some sectors performing well are those that benefit from improved prospects of former President Donald Trump being re-elected. Trump Media & Technology Group, the firm behind Trump’s Truth Social platform, surged 36.6%. Bitcoin also rose above $62,000 following an assassination attempt on Trump over the weekend, as he is seen as a crypto-friendly candidate.
Yields on longer-term Treasurys outpaced shorter-term ones, with the 10-year Treasury yield increasing to 4.21% from 4.19% late Friday. Similar movements occurred after last month’s debate between Trump and President Joe Biden, aligning with expectations of a Republican victory in November affecting U.S. government debt.
Big financial companies’ stocks, which could benefit from lighter regulations under a Republican administration, showed a mixed response after reporting earnings. Goldman Sachs rose 1.5% after exceeding profit and revenue expectations, while BlackRock slipped 0.2% despite surpassing profit forecasts but falling short on revenue.
This earnings reporting season is expected to deliver 9.3% growth in S&P 500 companies from a year ago, the strongest growth in over two years, according to analysts. Positive reports on inflation have also contributed to the upward momentum, with expectations of the Federal Reserve potentially cutting interest rates in September to ease economic pressures.
Federal Reserve Chair Jerome Powell will address the Economic Club of Washington later in the day.
In overseas markets, Chinese indexes showed mixed results following slower-than-expected economic expansion in the latest quarter, coinciding with the Communist Party’s policy-setting meeting. Hong Kong’s Hang Seng dropped 1.5%, while Shanghai stocks added 0.1%. European indexes saw mostly lower numbers.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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