US stocks are retreating from record levels as traders brace for a big week of gains

• U.S. stocks were mostly lower on Monday, retreating from last week’s record highs.

• Investors are turning their attention to the third quarter earnings season; 21% of S&P 500 companies will announce their figures this week.

• Bank of America said business leaders are taking an optimistic tone when it comes to earnings figures.

U.S. stocks traded mostly lower on Monday, retreating from last week’s record highs.

While the Nasdaq 100 rose slightly, the Dow Jones Industrial Average fell nearly 350 points.

Monday’s decline comes as third-quarter earnings season approaches its peak, with more than 100 S&P 500 companies set to report results this week, including Coca-Cola, Tesla, Boeing and UPS.

So far, investors should feel good about the third quarter results.

Of the 21% of S&P 500 companies reporting so far, about 80% exceeded earnings expectations by 5%, while 60% beat revenue expectations, according to Bank of America data.

Bank of America strategist Savita Subramanian said business leaders are taking an optimistic tone when it comes to earnings numbers.

“Processing the natural language of corporate management is delivering record levels of optimism, and a rebound after four quarters of slowdown,” Subramanian said in a note on Monday.

She added: “Mentions of weak demand fell and followed a two-year low, with fewer/more mentions associated with a rising/falling ISM Manufacturing PMI.”

Nvidia jumped to record levels during the session to lift the Nasdaq slightly higher. The stock rose more than 4% to close at $143.71. Analysts are optimistic about the stock’s prospects for further gains amid strong demand for the new Blackwell chips. Bank of America was the latest company to raise its price target for the stock, calling it a “generational opportunity” for the company in a note late last week.

It’s a quiet week for economic data, although Fedspeak is expected to expand throughout the week with speeches from six central bank officials.

Here’s where the US indexes stood at 4pm on Monday:

Here’s what else happened today:

The story continues

In commodities, bonds and crypto:

• West Texas Intermediate crude rose 1.88% to $69.98 a barrel. Brent crude, the international benchmark, rose 1.56% to $74.20 per barrel.

• Gold rose 0.16% to $2,734.50 an ounce.

• The yield on ten-year government bonds rose by 11 basis points to 4.188%.

• Bitcoin fell 1.78% to $67,790.

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