S&P 500 hits fresh high as investors await earnings season

The S&P 500 reached a fresh high, as investors awaited the start of the corporate earnings season, which begins this week.

The S&P 500 rose 0.2 % after the market index set a new high on Friday. The Nasdaq Composite fell by less than 0.1 %. The Dow Jones Industrial Average gained 100 points or 0.3 %.

The tech-heavy Nasdaq Composite Index fell after reaching a new high, but six of the 11 main S&P sectors rose in early trade.

Gains were driven by the S&P 500 technology and communication services, sectors, which include mega-cap technology firms Tesla Inc, Apple Inc, Facebook Inc, and Amazon.com.

The banking index gained 0.5 %, with JPMorgan Chase, Goldman Sachs, Bank of America, and other major banks leading the way ahead of their earnings reports.

Didi Global Inc dropped 5.1 %. The freshly listed company's shares have taken a beating as Beijing tightens its grip over data regulation and international IPOs. It said on Monday that several of its applications in China, including those used by drivers, will be removed, potentially reducing its revenue.

Virgin Galactic Holdings fell 12.5 % after the space tourism business announced it may sell up to $500 million in shares a day after completing its first fully crewed test trip into space with billionaire founder Richard Branson on board.

Earnings season begins on Tuesday, and investors will be looking intently to see if businesses' performance justifies the equities market's lofty prices.

S&P 500 businesses earnings are anticipated to climb 65.8 % in the second quarter, IBES data from Refinitiv said.

Stocks sagged last week before soaring to new highs on Friday. A decline in Treasury bond rates has market participants concerned about a slowing in growth. Investors are concerned about the proliferation of Covid-19 variations.

Later in the week, the focus will be on a slew of economic releases as well as Federal Reserve Chair Jerome Powell's testimony before Congress on Wednesday and Thursday for views on inflation and the economy. 

Meanwhile, Stoxx Europe 600 index increased by 0.7 %. In Asia, Shanghai Composite Index rose 0.7 %, while the Hang Seng Index in Hong Kong rose 0.6 %. The Nikkei 225 in Japan soared by 2.25 %.