US stocks hang near their record heights

U.S. stocks are inching closer to record highs on Monday, as investors anticipate profit reports from major retailers later in the week, which may shed light on consumer behavior amidst high inflation and a weakening job market. The S&P 500 fell by 0.1 percent, but remains in close proximity to its all-time peak reached on Thursday.

Meanwhile, the Dow Jones Industrial Average dropped 209 points, or 0.4 percent, as of noon Eastern time, while the Nasdaq composite gained 0.2 percent. The surge in Wall Street's performance can be attributed to the remarkable growth in U.S. company profits. In the S&P 500 index, earnings per share are projected to surge by approximately 50 percent in the spring compared to the previous year, according to FactSet.

This projection is significantly higher than what analysts had anticipated and would represent the most substantial increase since five years ago, during the economic recovery from the COVID-19 pandemic. All companies in the S&P 500 have already submitted their profit reports for the spring. However, upcoming reports from significant retailers, such as Home Depot, Target, and Walmart, are expected in the coming week and may face increased scrutiny due to the challenging economic conditions.