A new bull market is born. The Nasdaq closed at an all-time high Monday as Wall Street extended Friday's huge gains. Investors scooped up badly beaten shares and fed on energy stocks after major oil producers agreed to extend a deal on record output cuts.
The Nasdaq ended 1.1% higher. Its mercurial 44% climb from its spring lows confirmed that a new bull market began on March 23. The S&P 500 tacked on 1.2%, turning positive for the year. The Dow soared 1.7%.
But SMH Group CEO George Ball says the party won't last:
"I think corporate earnings in 2021 are going to be much lower than anybody's predicting at this point. Lower earnings tend to coincide with lower multiples; therefore, I think that recent history aside, the next move of the market is much more probably down than up."
Companies that had taken a pounding continued their resurgence, including shares of plane maker Boeing and cruise operators Carnival and Norwegian.
Investors took profits on high-flying stay-at-home stocks as the U.S. economy further reopened. They included Netflix and workplace messaging platform Slack Technologies.
Shares of Tesla zoomed higher. Sales of its mass market Model 3s made in China more than tripled in May compared to April.