The stock market opened with gains on Monday, continuing the upward momentum from the end of last week, fueled by expectations of an earlier rate cut from the Federal Reserve in response to a softer-than-expected jobs report.
The S&P 500 (^GSPC) rose by 0.4%, while the Nasdaq Composite (^IXIC) saw a 0.3% increase. Similarly, the Dow Jones Industrial Average (^DJI) edged up by approximately 0.4%.
Last week’s rally was sparked by a jobs report often described as “Goldilocks” — not too hot to raise inflation fears, yet not too cold to raise concerns about economic growth. This report bolstered the belief that the Federal Reserve might cut rates sooner than previously anticipated. According to the CME FedWatch Tool, over two-thirds of market bets now point toward a rate cut in September, with many traders expecting two cuts by year-end.
Investor attention is turning to statements from Federal Reserve officials, as they are now free to speak after the pre-meeting blackout period. Remarks from New York Fed President John Williams, Richmond Fed’s Thomas Barkin, and Minneapolis’ Neel Kashkari are anticipated for Monday and Tuesday, potentially influencing market sentiment.
Corporate earnings will also be in focus, with Disney (DIS) taking center stage as earnings season nears its end. With Disney stock up around 25% year-to-date, investors are eager to assess the company’s performance. Meanwhile, Apple (AAPL) saw a slight dip in its shares after Berkshire Hathaway CEO Warren Buffett disclosed a reduction in the company’s holdings. Despite this, Apple experienced a 6% surge on Friday following the announcement of its quarterly results and a significant share buyback plan.
In other corporate news, trading platform Robinhood (HOOD) revealed it had received a “Wells Notice” from the Securities and Exchange Commission (SEC) regarding potential securities violations related to cryptocurrency trading. This news adds to the scrutiny surrounding the popular trading app.
Despite the uncertainties, the stock market remains in gains, indicating a resilient investor sentiment.
