The S&P 500 Index (SPX) started this week by ripping to another record high, almost hitting $7,200.
But what was behind such a relentless climb? The catalyst is still at play: first-quarter 2026 corporate reports continue to deliver strong numbers. So far, about 84% of S&P 500 companies that have released their figures have blown past analyst expectations, with earnings per share (EPS) growth averaging 15.1%. Revenues have also topped forecasts. This marks the sixth straight quarter of a double-digit surge, with tech and AI-related names leading the charge.
At its April 29 meeting, the Federal Reserve (Fed) did exactly what the market expected: it left interest rates unchanged at 3.75%. The accompanying statement acknowledged rock-solid GDP growth and a job market that won't quit, while keeping a wary eye on inflation—especially the kind that gets ignited by rising energy prices. Chairman Jerome Powell doubled down at his press conference, pointing to the US economy's resilience and noting that being a net oil exporter helps insulate the country from outside shocks. The American regulator isn't rushing to cut rates, though the market still sees one or more reductions coming in late 2026.
Taken together, a blockbuster earnings season and the Fed's cautious, yet not tightening, stance are paving the way for further stock market gains. The stars are aligning for the index to keep marching higher.
The final recommendation:
— Buy SPX at the current price, aiming for $7,200 within one to two weeks.
— To protect against adverse market movements, place a Stop Loss order just beneath the resistance level, near $7,090.
This content is for informational purposes only and is not intended to be investing advice.
