Stocks Rise as Wall Street Builds on Its Record Highs – US Market Wrap

Stocks edged higher while closing at new records, with traders weighing strong economic signals against warnings that the market has gone too far, too fast.

Equities are recovering from a rocky start to the year on bets that the Federal Reserve will cut interest rates and the artificial-intelligence boom will continue to drive profit growth. Meanwhile, earnings season gets underway this week, with companies like Netflix, Tesla, and Intel set to report their results.

The S&P 500 was hovering around 4,850. Treasury 10-year yields fell two basis points, to 4.10%. The dollar fluctuated.

Gains in Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla have driven Wall Street’s resurgence. The equally weighted version of the S&P 500 removes some of their disproportionate influence, resulting in a ratio of approximately 16 times forward earnings, a 17% discount to the benchmark’s standard valuation.