The S&P 500 and Nasdaq closed at record highs on Monday (April 26), fueled by Tesla Inc ahead of the electric car maker’s quarterly report, the first of several this week from heavyweight growth companies.
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.
Tesla advanced ahead of its report due after the bell, with analysts expecting the company to show a rise in first-quarter revenue following record deliveries.
Companies that constitute about 40% of the S&P 500’s market capitalization report from Tuesday (April 27) through Thursday (April 29), including Microsoft Corp, Google parent Alphabet Inc, Apple Inc and Facebook Inc. Shares of the companies also rose.
Most of the 11 major S&P 500 sectors climbed, with the energy index among the top performers, while utilities and consumer staples 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.
Investors will monitor a two-day Federal Reserve meeting beginning Tuesday, with the U.S. central bank expected to shine some light on whether the employment landscape has affected its plan to leave interest rates near zero for an extended time and to continue buying $120 billion in bonds each month.
Also on investors’ radar is a reading of first-quarter gross domestic product later this week to gauge the pace of economic recovery in the United States.
The Dow Jones Industrial Average fell 0.18% to end at 33,981.57 points, while the S&P 500 gained 0.18% to 4,187.62. The Nasdaq Composite climbed 0.87% to 14,138.78.
(Production: Hyeongmi Kim, Conway Gittens, Roselle Chen)