Key facts
- U.S. stock markets opened higher on Monday.
- The Dow Jones Industrial Average reached a new record high.
- Broadcom was a key driver of the market's upward movement.
- Wall Street banks anticipate strong second-quarter earnings.
- The SpaceX IPO significantly boosted investment banking activity.
- Analysts anticipate at least a 15% year-on-year increase in market revenue for Wall Street banks.
- Rivian Automotive forecasts second-quarter revenues between $1.55 billion and $1.65 billion.
- Rivian's Q4 2025 EPS was -$0.54, beating estimates.
- European shares traded flat amid caution over AI stock valuations.
- Defence stocks saw a marginal increase in Europe.
- Investors are watching a NATO summit for signs of higher spending.
- Investors are looking ahead to central bank minutes and the start of the second-quarter earnings season.
U.S. stock markets opened higher on Monday, extending last week's rally as chip stocks rebound and AI strength drives gains. The S&P 500 and Nasdaq Composite saw significant gains, while the Dow Jones Industrial Average reached a new record high. Broadcom was a key driver of the market's upward movement. Wall Street banks, including JPMorgan Chase and Goldman Sachs, are poised for strong second-quarter earnings, driven by a surge in trading and investment banking activity, significantly boosted by the blockbuster SpaceX IPO. Analysts anticipate at least a 15% year-on-year increase in market revenue for these institutions.
In other corporate news, Rivian Automotive expects second-quarter revenues to be between $1.55 billion and $1.65 billion, surpassing analysts' consensus estimate of $1.45 billion. The company's Q4 2025 earnings report showed an EPS of -$0.54, beating estimates, though quarterly revenue fell year-over-year.
Meanwhile, European shares traded flat as caution over elevated AI stock valuations weighed on the technology sector. Defence stocks saw a marginal increase, with investors watching a NATO summit for signs of higher spending. Investors are looking ahead to central bank minutes and the start of the second-quarter earnings season.
Looking forward, investors are anticipating central bank minutes and the commencement of the second-quarter earnings season.