Wall Street is reaching for record highs as a busy week of corporate earnings reports and key inflation data unfolds. The S&P 500 gained 0.2% in early trading on Monday, while the Dow Jones Industrial Average climbed 146 points, or 0.3%, remaining just above its record closing high from last month. The Nasdaq composite saw a modest uptick of 0.1%. Notably, semiconductor giant Nvidia is set to release its latest earnings report on Wednesday, while other companies like Kohl’s, Chewy, Salesforce, and Dollar General will also report this week. Additionally, Friday’s government report will offer the latest insights into inflation trends.
In premarket trading, both the S&P 500 and the Dow Jones Industrial Average saw futures rise slightly, up less than 0.1%. Nvidia, which has gained a remarkable 161% year-to-date despite a recent dip, is under the spotlight this week. The company has capitalized on the surge in interest surrounding artificial intelligence, achieving a market valuation exceeding $3 trillion as demand for its chips continues to soar.
As analysts anticipate a significant quarterly revenue increase for Nvidia to approximately $28.65 billion—representing a 112% year-over-year rise—there are growing concerns about whether such rapid growth could lead to inflated market valuations among major tech stocks.
The government’s inflation data, part of the Commerce Department’s consumer spending report, will be released on Friday. Federal Reserve officials recently hinted at the possibility of cutting the benchmark lending rate, indicating that inflation might be stabilizing. A closely watched consumer confidence index will also be published on Tuesday, reflecting consumer spending patterns, which account for roughly 70% of U.S. economic activity.
In European markets, France’s CAC 40 increased by 0.2%, while Germany’s DAX dipped by 0.1%, and Britain’s FTSE 100 rose by 0.5%.
Crude oil prices have surged due to rising tensions in the Middle East, particularly between Israel and Hezbollah. Benchmark U.S. crude rose $2.08, or 2.8%, to $76.91 per barrel, while Brent crude, the international standard, gained $2.13, reaching $80.28 per barrel.
In Asia, the Bank of Japan indicated potential future interest rate hikes if inflation reaches the desired 2% target. This follows a previous increase in the key interest rate aimed at stabilizing the yen against the dollar. The dollar traded at 144.13 yen, with Japan’s Nikkei 225 index falling by 0.7% in response to the stronger yen.
Meanwhile, the People’s Bank of China maintained its one-year medium-term lending facility rate at 2.30% as it shifts its policy focus. In regional market movements, Hong Kong’s Hang Seng index gained 1.1%, while the Shanghai Composite index inched up by less than 0.1%.
Australia’s S&P/ASX 200 experienced a 0.8% increase, contrasting with South Korea’s Kospi, which slipped by 0.1%. The U.S. bond market saw the yield on the 10-year Treasury stabilize at 3.81%, while the two-year Treasury yield remained steady at 3.91%.
The S&P 500 closed the previous week with a 1.1% rise, reaching 5,634.61 and coming within 0.6% of its all-time high. The Dow Jones Industrial Average also experienced significant gains, finishing at 41,175.08, while the Nasdaq composite increased by 1.5% to 17,877.79. These gains followed comments from the Federal Reserve’s leadership suggesting a possible reduction in the main interest rate from its highest point in two decades.
