In a bustling start to the week, Wall Street saw a climb in stocks on Monday, as investors braced for a whirlwind of events including a Federal Reserve rate decision, the monthly jobs report, and earnings from major tech players.
The S&P 500 (^GSPC) edged up by 0.3%, while the Nasdaq Composite (^IXIC), dominated by tech stocks, saw a gain of approximately 0.4%. Tesla (TSLA) led the charge with its shares surging, buoyed by positive news from China. Meanwhile, the Dow Jones Industrial Average (^DJI), with fewer tech components, saw a more modest increase of around 0.1%.
Investors are eagerly anticipating a continuation of Friday’s strong gains, which were fueled by impressive earnings reports from Alphabet (GOOG, GOOGL) and Microsoft (MSFT). However, all eyes are now turning to upcoming reports from Apple (AAPL) and Amazon (AMZN), with scrutiny on AI costs and future prospects.
Elon Musk’s surprise visit to China on Sunday proved fruitful for Tesla, as the company cleared significant hurdles for its Full Self Driving software in the country. Tesla shares soared by over 11% after securing an FSD-related deal with Baidu (BIDU), potentially reviving its sales in the Chinese market. Baidu’s US-listed stock also saw a notable increase of almost 7%.
In the backdrop of these developments, the market is eagerly awaiting the Federal Reserve’s policy decision at the conclusion of its two-day meeting on Wednesday. Amidst uncertainties over inflation trends and the implications for interest rates, the central bank is widely expected to maintain rates at a 23-year high. However, debates are rife over the possibility and timing of rate cuts in 2024, with traders adjusting their expectations accordingly.
One of the notable movers in Monday’s trading was Philips (PHG), whose US-listed shares surged by over 36%. The medical device maker announced a $1.1 billion settlement to resolve claims related to a breathing device recall, significantly lower than market expectations.
As the week progresses, market participants will be closely monitoring the outcome of the Fed meeting and the release of the April jobs report, both of which have the potential to sway market sentiment. Additionally, the earnings reports from Apple and Amazon will provide further insight into the trajectory of the tech sector, influencing investor confidence in the ongoing stocks rally.
