U.S. stocks closed higher on Monday, with the Dow Jones Industrial Average finishing above the 38,000 milestone for the first time in history as fourth-quarter earnings season ramps up.
What happened
- The Dow Jones Industrial Average DJIA went up 138.01 points or 0.4% to end at 38,001.81, its third record close this year, according to Dow Jones Market Data. It is also the first time the index has closed above 38,000 in history.
- The S&P 500 SPX rose 10.62 points or 0.2% to finish at 4,850.43, its second record close in 2024.
- The Nasdaq Composite COMP advanced 49.32 points or 0.3% to end at 15,360.29, its highest finish since Jan. 4, 2022.
What drove markets
Including Monday, it has been 25 trading days since the last 1,000-point milestone for the Dow, which is the shortest time between milestones since the period between 33,000 and 34,000, according to Dow Jones Market Data. Of course, such milestones are less impressive on a percentage basis the higher the blue-chip index rises, with the move from 37,000 to 38,000 representing a 2.7% rise.
Even with both the Dow and the S&P 500 logging new all-time highs, stocks may still have more room to rise for the rest of the year, according to Anthony Saglimbene, chief market strategist at Ameriprise Financial.
“I think the outlook for this year was still pretty positive, particularly if earnings can grow on a year-over-year basis,” Saglimbene said in a phone interview.
“If we can get through the earnings season and outlooks can be fairly positive, I do think stock prices will rise higher. And I do think there’s opportunity outside of big tech for some of last year’s laggards to start to participate,” he added.
Some other investors are more skeptical, questioning the rally’s staying power given stretched valuations.