Tech Stocks Lift Markets Amid Earnings Season Optimism
The S&P 500 and Nasdaq rose to record highs, boosted by tech stocks, as investors anticipate crucial earnings reports. Caterpillar's rating downgrade and Boeing's announced job cuts dragged on the Dow. B. Riley Financial soared after agreeing to sell a unit for $386 million. Investors await key economic indicators.
The S&P 500 and Nasdaq surged on Monday, reaching intraday record highs as investors positioned themselves for a pivotal week filled with corporate earnings and key economic data that may challenge the elevated market valuations. Leading the charge were chip stocks, propelling the S&P 500 to new heights, following Friday's strong close after major banks inaugurated the third-quarter earnings season positively.
Technology shares took the forefront, with Nvidia and Apple registering gains, and the semiconductor sector index climbing to a two-month peak. Conversely, Caterpillar's shares declined following a rating downgrade by Morgan Stanley, applying downward pressure on the Dow Jones Industrial Average.
Earnings from financial heavyweights like JPMorgan bolstered optimism, yet apprehensions remain due to high stock valuations. B. Riley Financial experienced a notable leap after confirming a unit sale to Oaktree Capital. Investors are also bracing for September's retail sales data, providing insights into the country's economic pulse.
(With inputs from agencies.)
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