US Markets Hit New Records Ahead Of Key Earnings

The Nasdaq's record high close confirmed the end of an 11 percent correction in the index that began after its previous record high close on February 12.

Tesla advanced ahead of its report due after the bell, with analysts expecting the company to show a rise in first-quarter revenue following record deliveries.

Companies that constitute about 40 percent of the S&P 500's market capitalization report from Tuesday through Thursday, including Microsoft, Google parent Alphabet, Apple and Facebook.

Of 124 companies in the S&P 500 that have reported so far, 85.5 percent have topped analysts' earnings estimates, with Refinitiv IBES data now predicting a 34.3 percent jump in profit growth.

“We’re way above the average for firms reporting earnings above estimates. More important than the fact that they are beating on estimates is that they are raising their expectations and outlooks going forward, and that’s giving the markets a nice boost,” said Sal Bruno, chief investment officer at IndexIQ.

Investors will monitor a two-day Federal Reserve meeting that starts on Tuesday, with the US central bank expected to shine some light on whether the employment landscape has affected its plan to leave interest rates near zero for an extended time and to continue buying US$120 billion in bonds each month.

Also on investors' radar is a reading of first-quarter gross domestic product later this week to gauge the pace of economic recovery in the United States.

The Dow Jones Industrial Average fell 0.2 percent to end at 33,981, while the S&P 500 gained 0.2 percent to 4,187.

The Nasdaq Composite climbed 0.9 percent to 14,138.

Market participants are also watching out for any fresh developments on US President Joe Biden's tax plan after reports last week said he would seek to nearly double the capital gains tax to 39.6 percent for wealthy individuals. (Reuters)