The Dow Jones Industrial Average closed above 43,000 for the first time on Monday, while the S&P 500 reached another record high as investors awaited key corporate earnings reports this week.
The S&P 500 gained 0.8%, closing at 5,859.9, while the Dow rose by 201.4 points to end at 43,065.2, both setting new all-time highs. The Nasdaq Composite also climbed, rising 0.9% to finish at 18,502.7.
Major contributors to the Dow’s rise included McDonald's, UnitedHealth Group, and Apple, while the technology sector led gains in the S&P 500, continuing its strong performance.
This week’s earnings reports will be closely watched by investors, with Bank of America, Goldman Sachs, and Johnson & Johnson set to release results on Tuesday.
Morgan Stanley and United Airlines will report on Wednesday, followed by Walgreens Boots Alliance, Netflix, and Procter & Gamble later in the week.
Last week, JPMorgan Chase and Wells Fargo kicked off the third-quarter earnings season on a high note, boosting market sentiment.
Despite the market's record highs, investors remain cautious, with concerns over rising Treasury yields, uncertainty surrounding the Federal Reserve’s next policy moves, and escalating geopolitical tensions in the Middle East.
Additionally, the closely contested presidential election in three weeks is contributing to market anxiety.
The S&P 500 has gained nearly 23% this year, excluding dividends, and the current bull market, which began two years ago, has seen the index rally about 63% since its low in October 2022.
Treasury yields have also been rising, with the 10-year note yield - used to determine rates for mortgages and auto loans - exceeding 4.1% last week.
The bond market was closed on Monday due to the Columbus Day holiday.