U.S. Stocks Rise as Strong Earnings Boost Market Confidence
U.S. stocks moved higher on Monday, kicking off the new week on a positive note. Investor attention turned to another wave of corporate earnings, while the ongoing government shutdown continues to restrict the release of key U.S. economic data.
As of 09:32 ET (14:32 GMT), the Dow Jones Industrial Average gained 135 points, or 0.3%. The S&P 500 added 30 points, or 0.5%, and the NASDAQ Composite advanced 233 points, or 1%.
In October, the S&P 500 and Dow rose 2.3% and 2.5%, respectively, while the NASDAQ outperformed with a 4.7% gain, highlighting renewed strength in the tech sector.
Palantir Leads Earnings Parade
So far, over 300 S&P 500 companies have reported third-quarter results, and more than 80% have surpassed expectations, according to FactSet. This strong performance has boosted overall market sentiment.
Goldman Sachs’ chief U.S. equity strategist, David Kostin, noted that “the frequency of earnings beats has been unprecedented outside of the COVID period.” The firm reported that 64% of S&P 500 companies exceeded consensus earnings-per-share forecasts by at least one standard deviation — a rate seen only during the 2020–2021 reopening period.
Another 100-plus firms are set to release results this week. Palantir Technologies (NASDAQ: PLTR) will report after the closing bell on Monday. The AI and defense software firm recently raised its 2025 full-year revenue forecast for the second time, citing surging demand for its artificial intelligence services from both government and private clients.
Advanced Micro Devices (NASDAQ: AMD) is expected to report on Tuesday, with investors closely watching AI chip demand following strong performances from competitors. Uber Technologies (NYSE: UBER) and McDonald’s (NYSE: MCD) will report Wednesday, offering insight into consumer spending and service-sector trends.
Meanwhile, Kenvue (NYSE: KVUE) shares jumped after Kimberly-Clark (NASDAQ: KMB) announced plans to acquire the Tylenol maker in a $48.7 billion deal, forming a new consumer goods powerhouse.
Berkshire Hathaway (NYSE: BRKb) also saw gains after reporting robust third-quarter results. The Warren Buffett–led conglomerate increased its cash reserves to a record $381.7 billion, up sharply from $277 billion a year earlier.
Payroll Data Hit by Government Shutdown
Investor confidence also received a boost last week after the Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 3.75%–4.00%. While Jerome Powell signaled that future cuts are not guaranteed, markets took the move as a sign that the Fed remains committed to supporting growth amid easing inflation pressures.
However, the ongoing U.S. government shutdown, now among the longest in history, continues to disrupt the release of critical economic data. Key reports, including the nonfarm payrolls and job openings updates, are likely to be delayed.
As a result, investors will look to the ISM manufacturing index and Wednesday’s ADP jobs report for fresh indicators on employment trends in the world’s largest economy.
Crude Oil Edges Higher After OPEC+ Decision
Oil prices inched higher Monday following the latest meeting of OPEC+, where producers opted not to increase output in the first quarter of next year. The move helped ease fears of a potential supply glut.
Brent crude rose 0.1% to $64.8 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.1% to $61.00 per barrel. The group agreed to maintain its plan to raise production by 137,000 barrels per day in December, matching October and November levels.
OPEC+ also confirmed it will pause new production hikes for the first three months of 2026, citing concerns about slowing demand and a potential oversupply early in the year.
