After lagging behind last week, technology companies showed the best results on Monday, with stocks trading near record highs. This pushed the S&P 500 up by 0.1%, making it reach a new record.
Similarly, Nasdaq also posted a gain, but the increase on it is 1%.
The leaders of growth are Apple, Amazon and Zoom, while the ones that showed sharp decreases are cruise operators and airlines. Their shares plunged after governments from Europe and Asia imposed new travel restrictions from UK, as COVID-19 infections in the country increased again.
Now, the S&P 500 is trading above its average, and could potentially mark a peak in profit. Further growth will depend on market reaction about the upcoming data on US employment, which will be released on Friday. Analysts forecast it to show an increase in the number of jobs.
Regarding this, Oppenheimer chief strategist John Stoltzfus said: "Investors should not wait for stocks to rally in a straight line, but rather prepare for economic recovery to take shape. In terms of economic data, look forward to progress, not perfection."
Other key events to watch out this week are:
- OECD meeting on global minimum tax (Wednesday);
- speech of China President Xi Jinping (Thursday);
- OPEC meeting (Thursday);
- speech of ECB President Christine Lagarde (Friday);
- report on US employment (Friday).
