US Stock Market Today: S&P 500 Rises 1.5% and NASDAQ Gains 2% as US-China Trade Hopes Lift Markets

Attention is now turning to the start of the corporate earnings season, with major banks, including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo, scheduled to release their results this week. Analysts expect substantial trading revenue and deal activity to support earnings, but investors are alert to any signs of weakness.

Market strategists warn that valuations have stretched, with the S&P 500 now trading at about 22 times forward earnings, well above its 10-year average. Analysts say that profit growth will need to remain solid to justify current price levels.

Despite these concerns, historical trends suggest that there is still room for further gains. Data from LPL Financial indicate that bull markets entering their fourth year have historically produced average returns of approximately 12%. With inflation moderating and the Federal Reserve continuing to ease rates, many investors believe the rally could extend, provided corporate earnings remain resilient.

Also Read: US Stock Market Today: S&P 500 gains 0.6%, Dow rises 0.4%, NASDAQ gains 0.9%, Gold climbs 1.5%