US shares are off to a good start this week, thanks to rising earnings expectations.
The S&P 500 and Nasdaq both set new highs, while the DJI closed at an all-time high.
The US CPI, Goldman Sachs’ and JPMorgan Chase’s earnings, as well as covid worries, are all crucial.
The stock market in the United States got off to a good start this week, with investors hoping for improved company performance as the second quarter earnings season gets off. The Fed’s support for free money amid a light calendar might also be seen as a plus. Nonetheless, concerns about the coronavirus (COVID-19) and fears of strong inflation data driving the Fed to trim challenge market bulls near record highs.
However, the Dow Jones Industrial Average (DJI) reaches a new high of 34,996.18, up 126 points or 0.36 percent. The S&P 500 and Nasdaq, on the other hand, jumped to new all-time highs of 4,386.68 and 14,761.10, respectively, before closing around 4,385 and 14,733.
Gradual economic rebound supports bullish expectations for next quarterly results, while remarks from New York Federal Reserve President John Williams bolstered bullish sentiment on a calm day. “The US economy has not made the’substantial further progress’ required by the US Federal Reserve before it can begin to reduce asset purchases,” Williams added.
The virus numbers continue to rise in the Northern Hemisphere, posing a threat to unlock plans, while suspicions about the J&J vaccination add to the market’s concerns. According to Politico, the US Food and Drug Administration (FDA) has received 100 preliminary reports of Guillain-Barre syndrome following the administration of 12.8 million doses of the JNJ vaccination.
Elon Musk’s testimony to defend the 2016 acquisition of SolarCity satisfied bulls, while business-specific news benefited L Brands when the company conveyed the board’s consent to spin-off Victoria’s Secret. Furthermore, Walt Disney praised the success of Marvel’s “Black Widow,” despite the fact that Marvel’s “Black Widow” dropped 17% following reports that the studio was planning to sell up to $500 million worth of stock.
Moving on, the June US Consumer Price Index will be crucial to monitor, even though Fed policymakers remain largely in favor of maintaining the current monetary policy. The key earnings from Goldman Sachs and JP Morgan Chase will also be crucial. Above all, Fed Chair Powell’s testimony on Tuesday could provide important market guidance./n
