S&P 500 extends rally to 1% as tech-led Nasdaq climbs 1.5%

The S&P 500 extended its rally Monday, with gains expanding to 1%, while the Nasdaq 100 climbed 1.5%, extending the equity market's upward momentum as investors positioned for the second-quarter earnings season.

"The upcoming earnings season will be a critical test after corporate profit growth drove essentially all of the S&P 500's gains over the past year," said Ben Snider, strategist at Goldman Sachs.

The advance pushed the benchmark index higher, building on recent gains that have lifted US equities. The rally comes as the US dollar headed for its best month in nearly a year, supported by safe-haven demand amid tensions in the Gulf and expectations for the Federal Reserve's rate path, according to market data.

The move higher sets up a key test in the weeks ahead as companies begin reporting second-quarter results. With valuations elevated after the rally, earnings delivery will be crucial to sustaining the advance, according to Goldman Sachs strategists.

This article is for informational purposes only and does not constitute investment advice.