Jan. 22 (UPI) — Wall Street again reached record territory on Monday, continuing a recent surge that saw the Dow Jones Industrial Average climb 138 points to finish above 38,000 for the first time in its history.
The S&P 500 index also posted a new all-time high of 4,850.43 on Monday, rising by 0.22%, while the Nasdaq Composite advanced 0.32% to 15,360.29 in its best finish in more than a year.
It was the third record close for the Dow this year, continuing a trend fueled by expectations of hefty corporate profit margins as the new earnings season kicks off, as well as by hopes for interest rate cuts with inflation cooling.
Technology oriented companies are providing much of the impetus for optimistic earnings expectations, with firms such as Netflix, Verizon and AT&T getting ready to release results in the coming week — investors are betting on good news from them.
The markets are also reacting to positive news on the consumer sentiment front. On Friday, University of Michigan data indicated consumer sentiment improved dramatically in January, buoyed by expectations of cooling inflation.
The survey found consumer sentiment rose 13%, reaching its highest level since July 2021, while year-over-year consumer sentiment was up 21.4% over January 2023 levels.
The Federal Reserve, meanwhile, has hinted that interest rate cuts could be on the way, although its Open Market Committee is widely expected to hold interest rates steady for the fourth straight meeting when it gathers next week.
