US stocks edged higher on Monday, with the S&P 500 and Dow notching another record high close, as investors became more upbeat about the health of the economy and looked to coming earnings for signs of an AI boom for techs.
The S&P 500 (^GSPC) gained 0.2% after the index notched its first record close since January 2022 on Friday. The Dow Jones Industrial Average (^DJI) rose 0.4% to close above the 38,000 level for the first time ever. Stocks in the tech-heavy Nasdaq (^IXIC) jumped 0.3%.
An AI-fueled surge in tech shares has helped pull stocks out of their early-2024 doldrums, bringing the major indexes into positive territory for January. Quarterly results from the likes of Netflix (NFLX) and Tesla (TSLA) later this week will be closely watched, as tech earnings results could well indicate where the market heads in the short term.
At the same time, the Federal Reserve officials whose comments have buffeted stocks will stay quiet ahead of policymakers’ next meeting on Jan. 30. But readings on GDP and the Fed’s preferred inflation gauge later in the week could shed light on the debate that has been driving markets: when the Fed will pivot to cutting interest rates.
In individual stocks, Boeing (BA) came under more pressure after the FAA urged airlines to carry out checks on another class of 737 jet that uses the same door plugs as on the Max 9 that suffered a midair blowout.
Meanwhile, Archer-Daniels-Midland stock (ADM) sank over 24% Monday. The agricultural trading giant has placed its CFO on leave and delayed the release of its fourth quarter and 2023 earnings results amid an investigation into its accounting practices.
