Photo by Yiorgos Ntrahas on Unsplash
US stock market traders and investors are experiencing a gold rush as many stocks in the US market continue to hit new barriers. Overall, the Dow Jones and S&P 500 continue to hit historic highs as the US economy experiences a great revival, with many reports of bank earnings on high and more companies reaching significant milestones in the third quarter of 2021.
The three major stock indexes, namely the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, closed on new record highs on the first trading day of the week, Monday, as Wall Street continued on its bullish rally following economic growth prospects and predictions. However, this week, players in the stock market can expect more volatility as big bank earnings reports start on Tuesday, along with crucial inflation data.
One of the biggest winners currently is the Dow Jones market, which includes thirty blue-chip corporations, including Disney, Goldman Sachs, IBM, Coca-Cola, and many more. Last Monday, July 12, 2021, the Dow closed with a 126-point jump, recording a 0.4% end-of-day increase to 34,996, adding to the previous Friday’s all-time high. To date, the index has now pushed up to a gain of 16% this 2021 alone. One of the significant pushes to the index was the release of Disney and Marvel’s latest pandemic streaming film launch, Black Widow, which hit a movie-theater earnings pot of $80 million and streaming earnings of $60 million throughout the weekend.
On top of the Dow growth, the S&P 500 also jumped to record highs as it added another 0.4% to 4,385 points. Leading the surge were the reported earnings of big banks Morgan Stanley, Goldman Sachs, and JP Morgan, who posted stock gains of 3%, 2.5% and 2%, respectively. The benchmark index has now notched three straight weeks of progress as it has hit new highs despite experiencing chopping trading in the past few weeks.
Nasdaq’s tech-heavy index has also increased by 0.2% and has now also reached up to 16% growth in 2021 alone. S&P 500 has also been on a mid-term uptrend after collectively growing by 18.5% in 2021 to date.
Traders and investors will remember the short-lived drop in the market as the world fell to the COVID-19 pandemic early in 2020. Then, the nation hit economic crunches as many businesses closed and employees lost their jobs due to mandated lockdowns and border closures. Still, the stock market would recover well towards the latter part of 2020. The government would then put measures to reverse the recessive trend, and stocks of corporations that pivoted and thrived during the crisis pushed the stock market upward.
As more earnings reports come out for the remainder of the year, stock market trading experts expect favorable increases. “We ran out of superlatives to describe corporate America’s stunning performance during first-quarter earnings season,” shares one leading Wall Street player, LPL Financial, in a note released on Monday after citing profits that exceeded their initial targets.
More members of Wall Street remain optimistic as more of the economy opens up following increased vaccination efforts across the country and the rest of the world.