U.S. stocks traded mixed on Monday, hovering near record highs as investors braced for the next earnings calls from major banks to test the gains and the possibility of a “soft landing” for the economy.
The S&P 500 (^GSPC) rose about 0.3% toward a new record after closing above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite Index (^IXIC) rose 0.5% as Nvidia (NVDA) stock rose 2.2% to a new all-time high. The Dow Jones Industrial Average (^DJI) fell 0.2%.
Earnings are in the spotlight as the first week of third-quarter earnings begins. The bull market is now in its second year, and how this season develops is seen as the key to rising stock prices.
The Dow and S&P 500 ended a winning week with new records after JPMorgan Chase & Co. (JPM) and Wells Fargo (WFC) profits largely passed Wall Street’s test. Reports from Goldman Sachs (GS), Citi (C), and Bank of America (BAC) are scheduled to be submitted on Tuesday, and a report from Morgan Stanley (MS) is scheduled to be submitted on Wednesday. Household attention remains focused on major banks.
At the same time, there remains uncertainty as to whether the US Federal Reserve will cut interest rates again. Some analysts argue that a positive employment report and data showing “sticky” consumer and wholesale inflation are building the case for no rate cut in November. Retail sales figures released later this week will factor into the debate over whether the economy has held up in the face of Fed policy (the desired soft landing).
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
On the corporate front, Boeing (BA) shares fell nearly 3% amid doubts about the future of the crisis-hit aircraft maker. The company faced a record $5 billion loss in the third quarter, and a month-long strike hit its manufacturing industry, cutting 17,000 jobs.
Elsewhere, Chinese stocks initially managed to rise after a period of volatility as investors took a liking to Beijing’s latest stimulus promises, reviving recent historic gains. .
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