The S&P 500 closed at a record high Thursday, a day after the Dow Jones Industrial Average briefly set a new intraday record, as the stock market rallied on the back of positive third-quarter earnings reports from corporate America.
The S&P 500 rose 0.3%, closing at an all-time high of 4,549 points, while the Dow was nearly flat and the Nasdaq gained 0.6% in a mixed day of trading.
It was the seventh straight day of gains for the S&P 500 index, which is now up around 5% so far this month.
The market has mounted a comeback in October as corporate profits have proved resilient despite rising costs: Through Wednesday, some 84% of S&P 500 companies that have reported earnings topped estimates, according to data from Refinitiv.
Shares of electric car maker Tesla jumped 3.3% a day after posting record earnings and revenue, while tech company HP rose nearly 7% on the back of similarly strong results.
Investors also cheered strong employment data: Jobless claims fell to a new pandemic low last week, a promising sign for the wider economy.
Other stocks making big moves Thursday included WeWork, which jumped 11% in its trading debut after going public via a merger with a special purpose acquisition company (SPAC)—more than two years after its failed IPO. The share price of Digital World Acquisition, a SPAC that aims to merge with a media group connected to former President Donald Trump, skyrocketed 357% on the news that Trump plans to launch his own social media company.
Investors appear to have come into earnings season with significantly lower expectations than they had in prior quarters post-pandemic, according to a note from Bespoke Investment Group. “If that’s the case, and earnings continue to come in strong, it’s bullish for the market over the next month or so,” the firm predicts.
The S&P’s new record comes a day after the Dow rose by as much as 0.6% to a new intraday high before falling back. Both indexes have now fully recouped their losses over the past two months.