U.S. stocks are moving higher towards record levels on Monday as Wall Street’s momentum continues to drive it upward.
The S&P 500 is up 0.5% in early trading and is on track to surpass its previous all-time high set on Wednesday. This comes after its 10th winning week in the last 12, fueled by expectations of slowing inflation prompting the Federal Reserve to consider easing interest rates soon.
The Dow Jones Industrial Average has gained 273 points, or 0.7%, and is also heading towards a record as of 9:35 a.m. Eastern time. The Nasdaq composite is up 0.6% as well.
Areas of the market performing well are those that benefit when there is optimism around former President Donald Trump’s re-election prospects. Trump Media & Technology Group, the company behind Trump’s Truth Social platform, saw a 36.6% surge. Bitcoin also rose above $62,000 following an assassination attempt on Trump over the weekend, with Trump being a vocal supporter of cryptocurrencies.
Forecasts suggest that Trump may receive increased support in polls similar to President Ronald Reagan in 1981, according to Isaac Boltanksy, director of policy research at BTIG.
Longer-term Treasury yields have surpassed shorter-term yields, with the 10-year Treasury yield climbing to 4.21%. This movement follows similar patterns seen after last month’s debate between Trump and President Joe Biden.
Big financial companies’ stocks, which could benefit from potential lighter regulations under a Republican administration, were mixed after their latest earnings reports.
Expectations are high for this earnings reporting season, with analysts forecasting 9.3% growth for S&P 500 companies compared to the previous year.
The Federal Reserve’s plans to potentially reduce interest rates due to positive inflation reports have contributed to the bullish sentiment in the stock market.
Federal Reserve Chair Jerome Powell is scheduled to speak at the Economic Club of Washington later in the day.
In international markets, Chinese indexes were mixed after China reported slower-than-expected economic growth. Hong Kong’s Hang Seng fell 1.5%, while stocks in Shanghai rose 0.1%.
Most European indexes were trading lower.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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