U.S. stocks traded mixed on Monday but held near record highs as investors prepared for the next set of gains from big banks to test that rally and the chances of an economic “soft landing.”
The S&P 500 (^GSPC) rose about 0.3% and headed for a new record after finishing above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite (^IXIC) rose 0.5% while Nvidia (NVDA) shares soared to new highs, up 2.2%. The Dow Jones Industrial Average (^DJI) fell 0.2%.
Earnings figures take center stage as the first full week of third-quarter results kicks off. How the season plays out is seen as key to the stock rally as the bull market reaches its two-year mark.
The Dow and S&P 500 ended a winning week with new records after gains from JPMorgan Chase (JPM) and Wells Fargo (WFC) largely passed Wall Street’s test. Investors’ focus remains on the big banks, with reports from Goldman Sachs (GS), Citi (C) and Bank of America (BAC) due on Tuesday, and Morgan Stanley (MS) due on Wednesday.
At the same time, there is still uncertainty about whether the Federal Reserve will cut interest rates again. A favorable jobs report and data showing consumer and wholesale inflation are “tenacious” make the case for no interest rate cuts in November, some analysts argue. Retail sales data will add to the debate later this week about whether the economy has held up despite the Fed’s policy — the preferable soft landing.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
On the corporate front, shares of Boeing (BA) fell almost 3% on questions about the future of the crisis-hit aircraft manufacturer. The company, which suffered a record $5 billion loss in the third quarter, has cut 17,000 jobs after a month-long strike hits production.
Elsewhere, Chinese shares initially faltered as investors picked on Beijing’s latest stimulus promise, but managed to rise and revive their recent historic rally.
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