U.S. stocks saw a sharp rise today, Monday, at the close of trading, supported by strong gains in the financial and technology sectors, after positive quarterly earnings results sparked optimism among investors and eased concerns regarding credit quality at regional banks.
The three main indices on Wall Street closed with collective gains, while the Russell 2000 index of small companies outperformed both the Dow Jones Industrial Average and the S&P 500.
Paul Nolte, senior wealth advisor at Murphy & Sylvester in Illinois, said:
> "The market is experiencing strong and broad movement, and there are currently no notable negative indicators... There is a clear sense of relief in the financial sector, and the overall atmosphere seems positive."
Apple's (AAPL) stock recorded a new all-time high, while shares of Meta, Netflix, and Alphabet (GOOG) rose between 1.3% and 3.3%. The Philadelphia Semiconductor Index also surged to its historical highs, ending the session up by 1.6%.
It seems that the third-quarter earnings season has started strongly, as investors are anticipating this week reports from several major companies, including Tesla, Netflix, IBM, Intel, General Motors, Ford, along with companies from the transportation, manufacturing, and aviation sectors.
It is also expected that the upcoming results of regional U.S. banks in the coming days will provide a clearer picture of the financial sector, especially after the sharp sell-off witnessed last week due to concerns about credit pressures.
According to analysts' estimates, S&P 500 companies are expected to record a 9.3% growth in profits in the third quarter year-on-year, up from previous forecasts of 8.8% at the beginning of October.
According to the closing data:
The S&P 500 index rose by 71.13 points (+1.07%) to close at 6735.02 points.
The Nasdaq Composite Index rose by 310.57 points (+1.37%) to 22990.54 points.
Meanwhile, the Dow Jones Industrial Average rose by 513.06 points (+1.11%) to reach 46704.50 points.