AP Photo/Jason DeCrow
- US stocks surged on Monday amid solid first-quarter earnings reports and renewed hopes of interest rate cuts.
- Rate cut wagers grew following Friday's lighter-than-expected April jobs report.
- The futures market is now pricing in at least two interest rate cuts by the end of the year.
US stocks surged on Monday, extending gains from Friday and marking the best three-day rally of the year as investors cheered solid first-quarter earnings report and hopes for interest rate cuts were renewed.
Of the 80% of S&P 500 companies that have so far reported results, 81% are beating profit estimates by a median of 7%. Meanwhile, 61% of companies have beaten revenue estimates by a median of 4%, according to data from Fundstrat.
Importantly, most mega-cap tech companies that have held up the stock market in recent years reported solid earnings growth and reiterated their outlooks for higher sales and profits. The major company left to report results is Nvidia, which is scheduled to deliver earnings on May 22.
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