Major NY Stock Indexes Hit New Records Ahead of Earnings Season (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange once again hit record highs. The New York stock market closed the first trading day of the week on a strong note amid the corporate earnings season, the upcoming June Consumer Price Index (CPI) release, and cautious anticipation regarding Federal Reserve Chairman Jerome Powell's congressional testimony.

On the 12th (local time), the Dow Jones Industrial Average rose 126.02 points (0.36%) to close at 34,996.18, the S&P 500 increased by 15.08 points (0.35%) to 4,384.63, and the Nasdaq ended the day up 31.32 points (0.21%) at 14,733.24.

On this day, the Dow came close to breaking the 35,000 mark at closing but missed it by just 4 points. The Dow did surpass 35,000 during intraday trading but was pushed back by the end of the session.

The key focus of this week's trading is on inflation data. The June CPI, to be released the following day on the 13th, is expected to provide a final verdict on the peak of the U.S. economic cycle.

In May, the CPI rose 5% year-over-year. The core CPI, which excludes energy and food, increased by 3.8% compared to the same period last year.

If the month-over-month increase narrows, concerns about rising inflation could ease. Dow Jones estimates that June's CPI will rise 5% year-over-year, with core CPI increasing by 4%.

The market currently expects the CPI to rise 0.5% month-over-month, and if the actual figure exceeds this, it could stoke fears of rising inflation. Conversely, a lower figure could be interpreted as a relief in inflationary pressures.

It will also be a point of interest whether Chairman Powell maintains his stance that inflation is transitory during his congressional testimony after the June CPI release.

This week also marks the start of corporate earnings announcements. Strong earnings could provide confirmation for the reasons behind the record-high stock market gains.

Leading U.S. banks JPMorgan Chase and Goldman Sachs are set to open the earnings season with their reports tomorrow. Both companies have seen their stock prices rise ahead of their earnings announcements, boosting expectations.

According to FactSet, corporate earnings are estimated to have increased by more than 64% compared to a year ago. CNBC forecasts that this level of growth would be the highest since the second quarter of 2009.

On this day, U.S. Treasury yields rose slightly, reaching the 1.36% range.

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