Wall Street finished higher on Monday, boosted by gains in Apple and growing confidence that the US government shutdown could soon end. Investors also looked ahead to a busy week of earnings reports and inflation data.
The Dow Jones Industrial Average rose 515.97 points, or 1.12%, to close at 46,706.58. The S&P 500 added 1.07% to 6,735.13, while the Nasdaq Composite advanced 1.37% to 22,990.54.
Apple shares climbed nearly 4% to a record close after Loop Capital upgraded the stock to “buy” from “hold,” citing stronger iPhone demand and a new multiyear upgrade cycle expected to run through 2027.
Shutdown resolution hopes
Markets were also lifted by comments from National Economic Council director Kevin Hassett, who told CNBC he believes the shutdown, now in its 20th day, will likely end this week. He added that the White House was prepared to take stronger measures if no deal is reached.
Earnings season momentum
A strong start to the third-quarter earnings season continued to buoy sentiment. Bank of America said 76% of the 58 S&P 500 companies reporting so far have beaten estimates, above the historical first-week average of 68%. More broadly, 85% of results so far have come in ahead of expectations. Investors are also anticipating another quarter-point rate cut when the Federal Reserve meets later this month.
Banks recover after jitters
Financial stocks stabilised after last week’s sell-off triggered by loan-loss concerns. Zions Bancorporation and Western Alliance each rose 4% on Monday, ahead of Zions’ results due after the close.
Trade tensions ease
Hopes for progress on US-China trade talks added support. President Trump repeated that he expects a “fair” deal ahead of his meeting with Chinese President Xi Jinping in South Korea later this month. Treasury Secretary Scott Bessent also signalled de-escalation, noting he expects to meet with Chinese Vice Premier He Lifeng in the coming week.
Local outlook
Australian shares are set to follow Wall Street higher. Futures point to a 47-point, or 0.52%, rise for the S&P/ASX 200 to 9089 at the open.
Quarterly results are due from BHP, South32 and HUB24, while annual meetings are being held for Bendigo and Adelaide Bank, Cleanaway, IDP Education and Judo Capital.
Attention will also turn to policy commentary, with RBA Assistant Governor Brad Jones scheduled to speak at the ISDA/AFMA Derivatives Trading Forum in Sydney at 10.45am.
