Nasdaq, S&P hit record levels as megacaps rise ahead of tech earnings
At 11:21 a.m. ET, the S&P 500 gained 34.97 points, or 0.56 per cent, to 6,331.90 and the Nasdaq Composite gained 147.24 points, or 0.71 per cent, to 21,042.87.
The Dow Jones Industrial Average rose 201.87 points, or 0.46 per cent, to 44,544.76, just 1.28 per cent shy of its all-time high.
Verizon gained 4.1 per cent after boosting its annual profit forecast. The stock also drove up the communications sector, which emerged as the top gainer among other sectors.
Most big-tech names moved higher, pushing the S&P's information technology sector up 0.6 per cent to hit an all-time high.
The spotlight was on Google-parent Alphabet and electric-vehicle maker Tesla, whose results this week will kick off the "Magnificent Seven" earnings parade, and could set the tone for Wall Street.
Shares of Alphabet rose 2.1 per cent, while Tesla dipped 0.2 per cent. Both stocks have lagged their peers so far this year, with Tesla down 18.5 per cent year to date and Alphabet slipping 0.2 per cent.
"It is going to be interesting to see the Tesla and Google reports," because those two are kind of "underachievers in the Mag 7 this year," said Mike Dickson, head of research at Horizon Investments.
"We're going to need these earnings reports to just really knock it out of the park if we want to see this little leg of the rally continue."
Despite U.S. President Donald Trump's August 1 tariff deadline, the S&P 500 and the Nasdaq reached new heights recently as investors believed that the economic fallout from tariffs might not be as dire as once feared.
Trump has threatened to slap 30 per cent tariffs on imports from Mexico and the EU, and sent letters to other trading partners, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent to 50 per cent.
Investors were expecting some progress in trade talks after U.S. Commerce Secretary Howard Lutnick on Sunday expressed confidence over striking a trade deal with the European Union.
However, EU diplomats said the 27-member bloc is exploring a broader set of possible counter-measures against the United States, as hopes for a breakthrough deal with Washington dwindled.
On the economic data front, investors will keep a close eye on jobless claims figures and the July business activity report, expected on Thursday.
They will also closely analyze Federal Reserve Chair Jerome Powell's remarks on Tuesday for any clues on the central bank's next move, especially after last week's mixed inflation signals.
Traders have largely ruled out a July rate cut, and are now pegging the odds at about 56 per cent for a September reduction, according to CME Group's FedWatch tool.
Advancing issues outnumbered decliners by a 3.02-to-1 ratio on the NYSE, and by a 2.58-to-1 ratio on the Nasdaq.
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