US stock indexes closed moderately higher, with the S&P 500 Index ($SPX) (NYSE: SPY) rising 1.03% to post a three-week high on solid earnings momentum.
The Dow Jones Industrials Index ($DOWI) (NYSE: DIA) advanced 0.46%, reaching its highest closing level in three-and-a-half weeks as investor confidence strengthened.
The Nasdaq 100 Index ($IUXX) (NASDAQ: QQQ) outpaced the broader market with a gain of 1.13%, also settling at a three-week high driven by chipmaker strength.
Semiconductor and AI hardware stocks provided notable upward momentum, lifting the technology-heavy index and setting a constructive tone across the broader market.
Markets also drew carryover support from the prior Friday’s labor market report, which was seen as favorable for Federal Reserve policy and reinforced expectations for interest rate cuts.
The strong payroll data bolstered investor confidence that the Fed could begin easing monetary policy without the economy showing significant deterioration.
First-quarter earnings results have been a key driver of market optimism, with the vast majority of S&P 500 companies surpassing analyst expectations by a meaningful margin.
According to data compiled by Bloomberg Intelligence, approximately 81% of reporting S&P 500 companies have beaten their first-quarter earnings estimates, a notably high beat rate.
Full-year Q1 earnings growth is now projected to reach 6.5% year-over-year, a substantial upgrade from the pre-season estimate of just 3.8% that analysts had forecast entering the reporting period.
European equities also finished in positive territory, with the Euro Stoxx 50 closing up 0.72%, reflecting broadly improving sentiment across global markets.
China’s Shanghai Composite surged 1.16% to close at a seven-and-three-quarter-month high, signaling renewed appetite for risk assets among Asian investors.
Japan’s Nikkei Stock Index did not trade during the session, as markets were closed in observance of the Children’s Day public holiday.
