U.S. Stock Market hits record highs amid strong earnings and eased bank fears

NEW YORK: U.S. stocks surged to all-time highs on Monday, fueled by strong earnings reports from major tech and finance companies, along with waning concerns over regional bank credit stress. The rally lifted all major indexes, with the small-cap Russell 2000 outperforming, jumping 2.0%.

The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed sharply higher, buoyed by robust performances in tech and financial sectors. Tech giants Apple (AAPL), Meta (META), Netflix (NFLX), and Alphabet (GOOGL) gained between 1.3% and 3.3%, with Apple hitting a new record high. The Philadelphia Semiconductor Index (SOX) also set a new all-time high, closing up 1.6%.

“This is a good, solid, across-the-board move,” said Paul Nolte, senior wealth advisor at Murphy & Sylvest. “There’s some relief from the financials… investors are looking at it as maybe a bit of an overreaction on the downside last week.”

Investor sentiment was further boosted by signs of progress in Washington, with White House economic advisor Kevin Hassett suggesting the ongoing government shutdown could end this week. Despite a data blackout due to the shutdown, the Labor Department is set to release September’s Consumer Price Index (CPI) on Friday, a key indicator for the Federal Reserve amid ongoing inflation and tariff concerns.

The positive market sentiment is being driven in part by better-than-expected Q3 earnings. Analysts now forecast S&P 500 companies to post 9.3% year-over-year earnings growth, up from the 8.8% estimate earlier this month. Upcoming reports from Tesla (TSLA), Intel (INTC), IBM (IBM), GM (GM), Ford (F), and others are expected to provide further clarity.

“A lot of the uncertainty… tax legislation, the tariffs — has subsided for the time being,” said Matthew Keator of the Keator Group. “That’s allowed companies to focus on earnings and profitability.”

As the earnings season heats up, investors will be closely watching regional bank reports for deeper insights into the sector’s health following last week’s selloff tied to credit concerns.