SPX: S&P 500 Hits 36th Record of Year as Bank Stocks Rally Ahead of Earnings

Mainstay Wall Street names JPMorgan and Goldman Sachs added 1% or more each ahead of their spring-quarter updates.

• The S&P 500 gained a modest 4-point increase Tuesday — not much but enough to log its 36th record closing high of 2024. The broad-based Wall Street darling has been highly favored by investors who believe in the promise of AI to rewire the way businesses work, spend and operate. On Tuesday, however, the AI-drunk tech sector pulled back and the spotlight was on the banking corner with some big names flying.
• JPMorgan JPM and Goldman Sachs GS rose by 1% or more each and Citigroup C soared nearly 3% on the day. Bank stocks are hot again as they’re the ones to kick off the earnings season for the spring quarter. JPMorgan and Citi will update their financials this week and markets anticipate elevated dealmaking activity and hefty earnings and revenue figures.
• In other news, Federal Reserve boss Jay Powell spoke to Congress on Tuesday. He noted that, while inflation may be cooling, there is still a risk of it flaring back up if an early interest rate cut was introduced. To this end, the central banker said, Fed policymakers need “more good data” before loosening monetary policy with a rate cut. Inflation data for June is slated for release on Thursday with hopes pinned at a 3.1% growth from 3.3% in May.