On Monday (October 14), the US stock market showed strong performance, driven by technology stocks, with the S&P 500 and the Dow Jones Industrial Average hitting new closing highs. Meanwhile, concerns about the Chinese economy led to a decline in oil prices.
The S&P 500 index rose 44.82 points, or 0.77%, to close at 5,859.85, while the Nasdaq Composite Index rose 159.75 points, or 0.87%, reaching 18,502.69 points.
Additionally, the release of third-quarter corporate financial reports by major banks last Friday (October 11) drove the Dow Jones Industrial Average up by 201.36 points, breaking through 43,000 points for the first time, closing at 43,065.22 points that day.
Tech stocks led the stock market higher on Monday, with semiconductor stocks particularly favored by investors. The Philadelphia Semiconductor Index (SOX) rose by 1.8% to a two-month high, closing at 5,432.21.
Arm Holdings plc. saw a strong performance with its stock rising by 6.84%. Heavyweight tech stock Nvidia rose by 2.43% and reached a record closing price of $138.07, demonstrating strong demand and investor confidence in the market.
Despite the Dow’s impressive performance, stocks of Boeing and heavy industrial equipment manufacturer Caterpillar Inc. dampened its rise.
Boeing announced higher-than-expected third-quarter losses last Friday due to a four-week strike still ongoing, causing its stock to fall by 1.34%. Caterpillar, on the other hand, saw its stock drop by 2.01% after its rating was downgraded by securities firms.
Monday being the federal holiday of Columbus Day, market trading volume was relatively low at only 9.55 billion shares traded, compared to an average of 12.05 billion shares over the past 20 trading days.
According to Reuters, this week, 41 S&P 500 companies are expected to announce their earnings. This influx of new data from US companies will help investors assess the US economic conditions and whether businesses can continue to justify their stock market valuations.