On Monday, the U.S. stock market witnessed a notable surge, building on the positive momentum from the previous week. Led by technology stocks, major indexes posted significant gains, reflecting investor optimism and buoyancy in the market.
The Standard & Poor’s 500 index climbed 1% to reach 5,180.74, while the Dow Jones industrial average advanced 0.5% to 38,852.27. The Nasdaq composite, fueled by robust performances from tech companies, surged 1.2% to 16,349.25.
Among the standout performers were tech giants like Nvidia and Super Micro Computer, which spearheaded the rally once again. Despite facing occasional setbacks, these companies capitalized on the growing excitement surrounding artificial intelligence technology. Nvidia saw its stock soar by 3.8%, propelling its year-to-date gains to an impressive 86.1%, while Super Micro surged by 6.1%, marking a staggering 192.1% increase since the beginning of the year.
Vistra, an electricity and power generation firm, garnered significant investor attention after announcing its inclusion in the widely followed S&P 500 index. This development drove its stock price up by 2.1%. Similarly, Freshpet experienced a notable surge of 10.4% after reporting better-than-expected results, fueled by a surge in demand for pet food. Berkshire Hathaway also contributed to the positive sentiment, gaining 1% following its latest quarterly earnings report.
However, Spirit Airlines witnessed a downturn, sliding by 9.7% after reporting a larger-than-anticipated loss. The airline attributed its challenges to heightened competition, particularly in routes connecting the United States and Latin America.
On the flip side, Apple experienced a slight decline of 0.9% after Berkshire Hathaway disclosed a reduction in its stake in the tech giant.
The U.S. stock market has been marked by volatility since reaching a record high in March. Initially, concerns about persistently high inflation dampened investor sentiment, leading to a period of uncertainty. However, optimism returned following a favorable jobs report, which suggested that the economy could strike a delicate balance between strength and inflationary pressures.
Looking ahead, market participants remain attentive to key economic indicators and corporate earnings reports. While the bulk of S&P 500 companies have already reported their first-quarter results, notable names such as Walt Disney Co. and Uber Technologies are scheduled to release their earnings this week.
In the bond market, Treasury yields remained relatively stable, with the 10-year Treasury yield dipping slightly to 4.49%. Expectations of rate cuts by the Federal Reserve have strengthened, with traders pricing in an 89% probability of at least one rate cut by the end of the year.
Internationally, stock markets displayed mixed performances, with exchanges in several countries closed for holidays. Nevertheless, indexes in France, Hong Kong, Germany, and Shanghai posted modest to significant gains, reflecting positive sentiment across global markets.
Overall, corporate earnings have exceeded expectations, signaling robust growth not only in the U.S. but also in Europe and Japan. With global earnings on track for a second consecutive quarter of growth, investor confidence remains buoyant despite lingering uncertainties.