The path is set for the S&P 500 to reach a new record as soon as this week

09-06-2025

Stocks pushed higher on Monday as the S & P 500 continues to chip away at the gap to a new record high. Several events in the days ahead could prove to be the catalyst that vaults it over the top. The index is now about 2% below its record closing high of 6,144.15, set on Feb. 19. With the S & P 500 already seeing six days this year with a gain of at least 2%, the gap could be closed in one quick rally. .SPX YTD mountain The S & P 500 is about 2% below its record high from February. That move could be fueled by positive headlines on the trade front, with U.S. and Chinese officials meeting in London on Monday. Economic data could also provide a boost, with inflation readings on Wednesday and Thursday expected to show modest increases in prices, according to economists' estimates compiled by Dow Jones. Those developments will strike a market that appears primed to move higher, according to the JPMorgan trading desk. "For this week, we reiterate our tactical bullish call. Look for Techspeak to be supportive of Mag7/Semis, U.S./China talks to be positive for broader markets, and an inline CPI print to keep bond yields from surging which is supportive of Equities. Positioning suggests that we may see a combination of extending winners but also squeezes in the higher beta areas of the market. The SPX's all-time high is 2.4% away and we think we take that out this week or next," JPMorgan's data assets & alpha group said in the trading desk note Monday morning. To be sure, there's always a chance that the trade talks with China could break down or that inflation data comes in hotter-than-expected, resulting in a stock market sell-off. Investors also can't count out an unexpected twist — either positive or negative — coming from the White House. "Markets in the short term are levered to the whims and utterances of one unpredictable person (President Trump), perhaps to the greatest extent in history," Michael Graham, analyst at Canaccord Genuity, said in a research note Monday. — CNBC's Michael Bloom contributed reporting.

Hashtags

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Video: Our Chief Economics Correspondent Breaks Down July's Inflation Report

Wall Street Journal

5 minutes ago

Wall Street Journal

Video: Our Chief Economics Correspondent Breaks Down July's Inflation Report

A closely watched underlying measure of inflation rose 3.1% in July from a year earlier, slightly above forecasts. The Wall Street Journal's Nick Timiraos breaks down Tuesday's consumer-price index report:

11 minutes ago

South Korean president will meet Japanese leader ahead of summit with Trump

SEOUL, South Korea -- South Korean President Lee Jae Myung will meet Japanese Prime Minister Shigeru Ishiba in Tokyo next week before flying to Washington for a summit with President Donald Trump, underscoring how Trump's push to reset global trade is drawing the often-feuding neighbors closer. Lee's two-day visit to Japan Aug. 23–24 will be an opportunity to deepen personal ties with Ishiba and put bilateral relations on firmer ground. Their talks will center on strengthening trilateral cooperation with Washington, promoting 'regional peace and stability,' and addressing other international issues, presidential spokesperson Kang Yu-jung said Wednesday. Their meeting will come weeks after South Korea and Japan secured trade deals with Washington that shielded their trade-dependent economies from Trump's highest tariffs. The separate agreements negotiated their rates of reciprocal duties down to 15% from the originally proposed 25%, but only after pledging hundreds of billions of dollars in U.S. investments. Lee and Ishiba previously met on the sidelines of the June G7 meetings in Canada, where they called for building a future-oriented relationship and agreed to cooperate closely on various issues including trade and countering North Korea's nuclear and missile programs. Relations between the two U.S. allies often have been strained in recent years over grievances stemming from Japan's brutal colonization of the Korean Peninsula before the end of World War II. South Korea's previous conservative president, Yoon Suk Yeol, made active efforts to repair ties with Tokyo, including a major compromise on compensation issues related to Korean victims of Japanese wartime slavery, aiming to bolster trilateral security cooperation with Washington against North Korean threats. But Yoon's presidency was cut short by his brief imposition of martial law in December, which led to his ouster and imprisonment, leaving uncertainty over Seoul-Tokyo relations under Lee, who has long accused Japan of clinging to its imperialist past and hindering cooperation. Since taking office in June after winning the early presidential election, Lee has avoided thorny remarks about Japan, instead promoting pragmatism in foreign policy and pledging to strengthen Seoul's alliance with Washington and trilateral cooperation with Tokyo. There also have been calls in South Korea to boost collaboration with Japan in responding to Trump, who has unsettled allies and partners with tariff hikes and demands they reduce reliance on the U.S. while paying more for their own defense. Following his meeting with Ishiba, Lee will travel to Washington for an Aug. 25 summit with Trump, which his office said will focus on trade and defense cooperation. His meeting with Trump comes with concerns in Seoul that the Trump administration could shake up the decades-old alliance by demanding higher payments for the U.S. troop presence in South Korea and possibly move to reduce it as Washington shifts more focus on China.

12 minutes ago

China targets 2 Lithuanian banks in response to new EU sanctions

BEIJING -- China imposed sanctions on two Lithuanian banks in what it said was retaliation for the European Union including two Chinese financial institutions in its latest round of sanctions against Russia. Lithuania's UAB Urbo Bankas and Mano Bankas AB are prohibited from having any cooperation with individuals or institutions in China, according to a statement Wednesday from the Ministry of Commerce. The European Union adopted a new round of sanctions against individuals and companies supporting Russia in its war with Ukraine in July, which went into effect August 9. Among them were multiple Chinese companies, although China's Ministry of Commerce did not name which financial institutions were affected. 'The EU, disregarding China's solemn position, insisted on adding two Chinese financial institutions to its sanctions list for alleged involvement in Russia, and formally implemented the sanctions on August 9," said the statement. It added the move "severely damages the legitimate rights and interests of Chinese companies, and has a serious negative impact on China-EU economic and trade relations and financial cooperation." NATO has in the past called China a 'decisive enabler' of Russia's war effort as its companies sold tools, equipment and microelectronics.