US stocks rise as gold hits another record

The S&P 500 and the Nasdaq have advanced for a ‍fourth consecutive session, as investors geared up for a slew of mega-cap earnings and a Federal Reserve update on interest rate policy later this week.

Both indexes on Monday hit their highest levels in more than a week and registered their longest string of advances since December, alongside renewed strength in gold.

Gold's price briefly topped $US5,100 ($A7,367) per ounce for the first time, and silver surged even more. The US dollar's value slid again versus other currencies, particularly the Japanese yen.

Mega-cap tech stocks drive the rally

Gains in a handful of mega-cap names did most of the heavy lifting for the S&P ⁠500, with Apple, Microsoft, Alphabet, Broadcom and Meta among the benchmark's top boosts.

Apple, Meta, Microsoft and Tesla are slated to report quarterly results later this week, setting up a key test for a rally powered by enthusiasm around AI.

Investors will look for signs of measurable payoffs from AI spending. With concerns over high valuations in the tech space, guidance will be especially important and even a modest stumble could spark a rethink of the AI trade.

"You're seeing communications and technology trading well today ahead of earnings from many large companies," said Chris Zaccarelli, chief investment officer of Northlight Asset Management in Charlotte, North Carolina.

"It seems like we're seeing an expansion in corporate profits and the economy, so investors are cautiously optimistic and looking ahead to earnings season."

Earnings season off to a strong start

Of the 64 companies in the S&P 500 that had reported earnings as of Friday, 79.7 per cent beat analyst expectations, according to data compiled by LSEG.

According to preliminary data, the S&P 500 gained 34.52 points, or 0.50 per cent, to end at 6,950.13 points, while the Nasdaq Composite gained 102.54 points, or 0.44 per cent, to 23,603.78. The Dow Jones Industrial Average rose 307.91 points, or 0.63 per cent, to 49,406.62.

Communications services was the biggest gainer among the S&P 500's 11 major industry sectors during Monday's session, while consumer discretionary lagged, weighed down by Tesla.

Fed decision and politics in focus

Also on investors' minds was the Fed meeting, which starts on Tuesday and ends with a policy update on Wednesday afternoon. While traders see a more than 97 per cent probability the central bank will hold rates steady, investors will watch for clues on its future policy path.

The decision risks being overshadowed by renewed questions over the central bank's independence after the Justice Department opened a probe into Chair Jerome Powell this month, and President Donald Trump said a pick for the next Fed chair could come soon.

Earlier, Chris Larkin at E*Trade from Morgan Stanley said Wednesday's Fed announcement was likely to keep politics in the headlines.

Individual stocks move on earnings and policy news

Shares of chipmaker Intel sank after falling 17 per cent on Friday - their steepest drop in nearly 18 months - after the company forecast quarterly profit and revenue below estimates.

JetBlue lagged as airline stocks dealt with the aftermath of mass flight disruptions following a major winter storm in the eastern United States.

Shares fell sharply in prison operators GEO Group and CoreCivic, which have contracts with US Immigration and Customs Enforcement, after Democrats in the US Senate said they would oppose a funding bill for the Department of Homeland Security.

Shares of USA Rare Earth rallied after reports the US administration was taking a 10 per cent stake in the miner as part of a $US1.6 billion ($A2.3 billion) debt-and-equity investment package.

Among other moves, CoreWeave climbed after Nvidia said it would invest $US2 billion ($A2.9 billion) in the cloud infrastructure firm.