US stocks extend rally to close at fresh records ahead of mega-cap earnings

• US stocks closed at fresh record highs as investors gear up for Q4 mega-cap tech earnings.

• Apple, Microsoft, Amazon, Alphabet, and Meta Platforms are set to release earnings this week.

• A Fed interest rate decision and the January jobs report will cap off the week.

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The S&P 500, Nasdaq 100, and Dow Jones Industrial Average all closed at fresh record highs on Monday as investors gear up for mega-cap tech earnings.

Apple, Microsoft, Amazon, Alphabet, and Meta Platforms, cumulatively representing nearly $10 trillion in market value, are set to report their fourth-quarter earnings results this week, and the results could set the tone of the stock market for weeks to come.

So far, 25% of S&P 500 companies have reported their fourth-quarter earnings results, with 71% of those companies beating profit estimates by a median of 7% and 68% of those companies beating revenue estimates by a median of 2%, according to data from Fundstrat.

On Wednesday, investors will be squarely focused on the Federal Reserve's meeting which will include an interest rate decision followed by a press conference from Fed Chairman Jerome Powell. Current market expectations are for the Fed to keep interest rates unchanged. Investors will have to navigate a January jobs report on Friday to cap off the week.

Here's where US indexes stood at the 4:00 p.m. closing bell on Monday: 

• S&P 500: 4,927.93, up 0.76%

• Dow Jones Industrial Average: 38,333.45, up 0.59% (+224.02 points)

• Nasdaq Composite: 15,628.04, up 1.12%

Here's what else happened today: 

• Elon Musk's net worth has declined by $30 billion so far this year to just under $200 billion amid a 26% decline in Tesla stock.

• The collapse of China Evergrande, the massively indebted Chinese real estate company, has begun with a Hong Kong court ordering the firm to liquidate.

• Consumer sentiment towards the US economy has taken a big swing upwards, all thanks to falling gas prices and a booming stock market.

• BlackRock double-upgraded its view on US stocks to "overweight" from "underweight" on the promise of a soft landing in the economy.

• Goldman Sachs said it still expects the Fed to cut interest rates in March and warned that weakness in the labor market could materialize quickly.

• The average US homebuyer has gained $40,000 in buying power in the last 3 months as mortgage rates cool.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil fell 1.32% to $76.98 a barrel. Brent crude, the international benchmark, dropped 1.23% to $82.52 a barrel.

• Gold climbed 0.71% to $2,031.60 per ounce.

• The 10-year Treasury yield dropped seven basis points to 4.07%.

• Bitcoin jumped 2.55% to $43,101.

Read the original article on Business Insider