Investors are turning their attention to fourth-quarter earnings results and the release of US GDP data later this week.
US stocks jumped on Monday as bond yields tumbled, helping the S&P 500 notch a record close for the second trading day in a row and powering the Dow Jones Industrial Average to close above 38,000 for the first time ever.
Bullishness over rate cuts has dipped but still appears elevated, even as some commentators warn that investors may have gotten ahead of themselves at the end of 2023, when the market surged on hopes the Federal Reserve could cut rates as soon as March. The odds of a March cut have dipped to about 40%, down from over 80% earlier this month.
The 10-year Treasury yield dipped four basis points to 4.103% on Monday.
Investors are now turning their attention to fourth-quarter earnings results, with Tesla and Netflix set to report later this week.
With 10% of the S&P 500 having reported earnings so far, 65% are beating profit estimates by a median of 6%, according to data from Fundstrat. Meanwhile, 62% of those companies beat revenue estimates by a median of 2%.
