S&P 500, Nasdaq close at record highs ahead of technology earnings wave

The S&P 500 and Nasdaq closed at record highs on Monday, fueled by Tesla Inc and other heavyweight growth stocks ahead of a deluge of earnings reports this week.

The Nasdaq’s record high close confirmed the end of an 11% correction in the index that began after its previous record high close on Feb. 12, with the index closing at a low on March 8.

In extended trade, Tesla (TSLA.O) dipped about 0.4% after the electric car maker beat Wall Street expectations for first-quarter revenue. During Monday’s trading session, Tesla had gained 1.2%. read more

Companies that constitute about 40% of the S&P 500’s market capitalization report from Tuesday through Thursday, including Microsoft Corp (MSFT.O), Google parent Alphabet Inc (GOOGL.O), Apple Inc (AAPL.O) and Facebook Inc (FB.O). Shares of those companies also rose.

Seven of the 11 major S&P 500 sectors climbed, with the energy index (.SPNY) leading with a 0.6% gain, while utilities (.SPLRCU) and consumer staples (.SPLRCS) declined.

Of 124 companies in the S&P 500 that have reported so far, 85.5% have topped analysts’ earnings estimates, with Refinitiv IBES data now predicting a 34.3% jump in profit growth.

Source: Reuters