Nasdaq Gains 1.2% as Amazon Leads Tech Rally Before Earnings
The Nasdaq Composite rose 1.2% to 26,463.4 after midday Monday, while the S&P 500 increased 0.5% to 7,699.7. The Dow Jones Industrial Average declined 0.1% to 51,978.1. Amazon.com (AMZN) led the Dow with a 5% intraday gain, followed by IBM, Nvidia (NVDA), Alphabet (GOOG, GOOGL), and Microsoft (MSFT). Consumer discretionary stocks advanced 2.7%, outpacing the tech sector's 1.5% gain, while utilities led the declines among sectors.
The Nasdaq Composite rose 1.2% to 26,463.4 after midday Monday, while the S&P 500 increased 0.5% to 7,699.7. The Dow Jones Industrial Average declined 0.1% to 51,978.1. Amazon.com (AMZN) led the Dow with a 5% intraday gain, followed by IBM, Nvidia (NVDA), Alphabet (GOOG, GOOGL), and Microsoft (MSFT). Consumer discretionary stocks advanced 2.7%, outpacing the tech sector's 1.5% gain, while utilities led the declines among sectors.
Deutsche Bank stated on Monday that Alphabet likely experienced relatively healthy Google search revenue growth in the third quarter, driven by higher pricing and solid search volume. On the S&P 500, Datadog (DDOG) recorded the largest gain at 6.5%, followed by SanDisk (SNDK) and Marvell Technology (MRVL). Netflix (NFLX) is scheduled to report quarterly earnings on Tuesday. Meta Platforms (META) and Tesla (TSLA) are set to release their results on Wednesday after market close. Additionally, GE Aerospace (GE), Philip Morris International (PM), Thermo Fisher Scientific (TMO), Procter & Gamble (PG), and American Express (AXP) have earnings reports slated for the current week.
Oppenheimer Asset Management upgraded its full-year S&P 500 earnings outlook, noting that the third-quarter reporting season started solidly. The firm expects the index to close 2026 at 8,100. John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, said in a report on Monday that another better-than-expected quarter is likely. He added that recent economic and corporate fundamentals, along with increased adoption of artificial intelligence by businesses and consumers, may provide further upside for stocks before year-end.
Treasury yields were higher intraday, with the 10-year rate up five basis points to 5.15% and the two-year rate rising 3.8 basis points to 4.77%. West Texas Intermediate crude oil increased 0.5% to $101.89 a barrel, while Brent crude fell 0.5% to $109.34. Spot gold dropped 0.7% to $4,138.60 per troy ounce, and silver rose 0.1% to $57.34 per ounce.
US President Donald Trump signed an executive order on Friday to waive key sanctions and tariffs on Russia, following his recent lifting of sanctions on Russian diesel exports. The Wall Street Journal reported that Russian President Vladimir Putin has proposed a meeting next month between Trump, Chinese President Xi Jinping, and himself to discuss a potential deal to end the Ukraine war.