US stocks edged higher on Monday, positioning the S&P 500 for another record high, as investors grew more optimistic about the state of the economy. They eagerly anticipated upcoming earnings, particularly seeking signs of an AI boom for tech companies.
The S&P 500 (^GSPC) rose by 0.3%, following its first record close since January 2022 on Friday. The Dow Jones Industrial Average (^DJI) increased by around 0.2%, while the Nasdaq 100 (^NDX), dominated by tech stocks, surged by 0.5%.
A surge in tech shares driven by AI has lifted stocks from their early-2024 slump, pushing major indexes into positive territory for January. Consequently, the market will closely monitor quarterly results from companies like Netflix (NFLX) and Tesla (TSLA) this week, as the performance of tech earnings could influence the market’s short-term direction.
Simultaneously, Federal Reserve officials, whose statements have impacted stocks, are expected to remain silent ahead of the next meeting on Jan. 30. However, economic indicators such as GDP readings and the Fed’s preferred inflation gauge later in the week may provide insights into the ongoing market debate regarding when the Fed will shift to cutting interest rates.