US open: Stocks continue to gain after Friday's record close
US stocks rose in early trade on Monday, building on the record gains seen at the end of last week, when the S&P 500 closed at a new all-time high.
At 1455 GMT, the Dow Jones Industrial Average and the S&P 500 were both 0.6% higher, while the Nasdaq was up 0.8%.
Tickmill Group analyst James Harte said: "The likely driver behind the current uptick in stocks is the view that a soft-landing will be seen this year. Fear of a recession in the US had been a big headwind for stocks over late 2023. With rates still elevated and projections for a hard-landing taking hold, the S&P was seen correcting sharply over Q3/Q4. However, with consensus now shifting away from projecting a recession, traders are overlooking the near-term hawkish pushback from the Fed. Indeed, with the Fed signalling that rate cuts will likely be coming this year, this seems to be good enough for now.
"Looking ahead this week, away from the BOJ and ECB meetings, focus in the US will be on the upcoming GDP reading due on Thursday along with the latest PMI readings a day earlier. Any further data strength at this point should keep stocks supported, encouraging the view that a hard landing can be avoided."
Investors were also eyeing the first of the results from the ‘Magnificent Seven’ this week, with Tesla earnings due after the bell on Wednesday. Results from IBM and Netflix are also scheduled for release.
In equity markets, NuStar Energy surged after agreeing to be bought by US gas station owner Sunoco in a $7.3bn all-share deal.
Macy’s gained after saying over the weekend that it had rejected Arkhouse Management and partner Brigade Capital Management’s $5.8bn proposal to take the department store chain private.
Gilead Sciences fell sharply after its Trodelvy treatment failed to significantly improve survival rates in a trial of patients with advanced lung cancer.
Boeing edged lower after the US Federal Aviation Administration recommended that operators check door plugs on another aircraft model.