After enduring a week of volatility, the US stock market experienced a notable upswing on Monday, with both the Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) showing positive gains. Investors are now turning their attention to pivotal events scheduled for the week, including the Federal Reserve’s policy decision and the release of quarterly earnings from tech giant Apple (AAPL).
The benchmark S&P 500 (^GSPC) recorded a commendable climb of approximately 0.7%, bouncing back after officially entering correction territory on Friday. The Dow Jones Industrial Average (^DJI) followed suit, surging by over 0.8%, equivalent to a gain of more than 250 points. This impressive rebound marked a stark contrast to its previous close, which saw a dip of over 350 points. The tech-focused Nasdaq Composite (^IXIC) also witnessed an uptick of around 0.8%.
All eyes are now fixed on the Federal Reserve, as well as Apple, which stands as the largest company on the S&P 500. Both entities are anticipated to play a pivotal role in bolstering market sentiment following a challenging period for investors. Of particular interest is the forthcoming US jobs report for October, slated for release on Friday.
Anticipation has been fueled by a surge in the Fed’s preferred inflation metric, leading experts to predict a continuation of the central bank’s “higher for longer” stance. This suggests that interest rates will remain steady in the forthcoming decision on Wednesday.
On Thursday, Apple is scheduled to unveil its quarterly results after the market’s closing bell. Analysts will be closely scrutinizing the impact of recent developments in China, where measures have been implemented to restrict the usage of iPhones.
Monday also saw keen interest in the earnings report from McDonald’s, offering valuable insights into the resilience of the US consumer in the face of escalating borrowing costs. This event, highly anticipated by investors, is expected to shed light on the consumer’s ability to weather economic challenges.
In the commodities market, benchmark oil prices experienced a decline. This came as Israel initiated a measured campaign in Gaza, alleviating concerns of an escalating conflict and subsequently prompting investors to re-engage in the market. West Texas Intermediate futures (CL=F) registered a 1.8% decrease, settling at $84.01 per barrel. Concurrently, Brent futures (BZ=F) exhibited a 1.5% drop, trading at approximately $87.86 per barrel.
As the US stock market seeks to conclude a turbulent few months, vigilance remains high for any developments pertaining to future Federal Reserve policy decisions, corporate earnings reports, and geopolitical shifts. Market participants are poised for a week that holds significant potential to shape the trajectory of the financial landscape.
Source: Yahoo Finance
