Wall Street closed with a mixed performance on Monday, as the S&P 500 and the Nasdaq Composite set new record highs, while the Dow Jones Industrial Average slipped into negative territory. The S&P 500 rose 8.85 points, or 0.12%, to finish at 7,173.93, and the Nasdaq Composite gained 50.50 points, or 0.20%, ending at 24,887.10. In contrast, the Dow fell 62.67 points, or 0.13%, to 49,168.04.
In after-hours trading, major U.S. stock index futures edged modestly higher, with the S&P 500 up 0.14%, the Nasdaq 100 adding 0.15%, the Dow inching ahead 0.09%, and the Russell 2000 climbing 0.18%, according to StockAnalysis data. The subdued after-hours activity suggests investors are bracing for a busy week of corporate earnings and a key Federal Reserve decision.
Big Tech Earnings and Fed Decision in Focus
This week is packed with events that could determine the near-term direction of markets. Earnings reports are expected from Amazon, Alphabet, Meta Platforms, Apple, and Microsoft, together representing roughly 44% of the S&P 500's total market value, as noted by Reuters. The Federal Reserve is also set to announce its interest rate decision, with policymakers widely expected to keep the benchmark overnight rate in the 3.50%-3.75% range. The recent rise in oil prices has raised questions about whether the Fed might signal a more cautious stance on rate cuts.
Nvidia Surges, Domino's Slides
Technology stocks led the rally, with Nvidia jumping 4% to a new record, pushing its market capitalization back above the $5 trillion mark. Micron Technology also gained 5.6%. However, the Philadelphia semiconductor index posted its first decline in 19 sessions, indicating that momentum was not uniform across the sector. On the downside, Domino's Pizza shares fell after the company issued a softer-than-expected outlook for 2026 same-store sales growth. CEO Russell Weiner cited increased competition from quick-service pizza rivals, including McDonald's and Burger King, which have also rolled out value meal deals.
Earnings Season Strength
First-quarter earnings season has been robust so far, with 81.3% of S&P 500 companies that reported through Friday beating Wall Street estimates, according to LSEG data via Reuters. Aggregate earnings for the quarter are now on track to rise 16.1% year-over-year. "Next week is just going to be a big week for confirmation of the rally," said Anthony Saglimbene, chief market strategist at Ameriprise, before the week began. "The market is just trying to deal with the rally," added Robert Pavlik, senior portfolio manager at Dakota Wealth, in comments to Reuters.
Verizon Gains on Subscriber Growth
Verizon shares rose after the company raised its full-year profit guidance and reported 55,000 net additions in postpaid wireless subscribers—a key metric for stable, high-margin customers. New Street Research analysts said the numbers suggest CEO Dan Schulman is "here to fight tooth and nail." Verizon credited targeted promotions aimed at switching customers from AT&T and T-Mobile for the subscriber growth in the first quarter.
Oil Prices Spike on Middle East Tensions
Oil prices surged, with Brent crude for June delivery jumping 2.8% to close at $108.23 a barrel, according to the Associated Press. The Strait of Hormuz remains effectively shut, and ongoing Middle East tensions continue to fuel supply concerns. Rising oil prices pose a risk to the stock market, as higher energy costs could push inflation higher, weigh on consumer spending, and make the Fed reluctant to cut interest rates. This could challenge the earnings resilience that has supported record-high valuations.
After-hours trading remained steady but lacked conviction. The real market-moving events will likely come later this week when mega-cap earnings and the Fed statement are released. Investors will be watching closely to see if record valuations can be sustained by strong guidance, healthy margins, and a supportive rate trajectory.
