Stocks surged on Monday, building on previous gains to reach record levels. The Dow Jones Industrial Average climbed 244 points, or 0.7%, establishing a new all-time high. The S&P 500 and Nasdaq Composite also saw gains of 0.5% and 0.6% respectively, setting fresh all-time highs. Key stocks that contributed to the day’s gains included Macy’s, which climbed over 3% after rejecting a $5.8 billion private takeover bid, and SolarEdge, which soared more than 6% following an announcement of significant workforce layoffs.
However, not all stocks saw positive movement. Archer-Daniels-Midland plummeted more than 18% after issuing a weak earnings forecast and placing their CFO on leave due to an accounting investigation. Meanwhile, B Riley Financial slipped nearly 4% after it was reported that regulators are investigating deals with a client connected to securities fraud. The rise in stocks on Monday follows a recent bullish trend, with the S&P 500 breaking record highs set in January 2022. This upward momentum reflects investor optimism, as many expect the U.S. central bank to cut benchmark interest rates in March to cool the economy without tipping it into a recession.
Traders are now looking ahead to upcoming economic reports, including gross domestic product data on Thursday and the personal consumption expenditures prices report on Friday. These reports are likely to shape investor expectations regarding future monetary policy. With such key reports on the horizon, investors will be closely monitoring market activity and reacting accordingly to the new insights provided by these economic indicators.