Economy and China Drive U.S. Stocks to New Heights

Market Performance and Economic Context

U.S. stocks are soaring as the economy proves resilient, contributing to all-time highs. The S&P 500 was up 0.8% during afternoon trading, building on its recent records. The Dow Jones Industrial Average rebounded from earlier losses, gaining 225 points for a 0.5% increase. The Nasdaq composite also advanced by 1%. Meanwhile, the bond market is closed due to the holiday, leaving traders focused on equity performance amidst supportive economic data.

Investor Sentiment and Key Financial Developments

Investor sentiment is improving thanks to indications that the Federal Reserve is focusing on maintaining robust economic growth while easing inflationary concerns. Recent reports indicate the economy's strength is surpassing expectations, which raises optimism around a stable transition to lower inflation rates. SoFi Technologies saw a remarkable 11.1% surge following a $2 billion loan agreement with Fortress Investment Group. Longboard Pharmaceuticals skyrocketed by 51.2% after H. Lundbeck announced its acquisition of the biopharmaceutical firm for $2.6 billion.

In contrast, Boeing reported a 1% drop in its shares as investors reacted negatively to the company's forecast of burning through $1.3 billion in cash this quarter amidst layoffs affecting 10% of its workforce. Upcoming earnings reports from Bank of America, Johnson and Johnson, and UnitedHealth Group will be closely watched for further insights on corporate profitability and economic growth trajectories.