After enduring a turbulent start to the week, US stocks made a robust recovery on Monday, fueled by investor optimism ahead of pivotal events, including the impending policy decision of the Federal Reserve and Apple’s eagerly anticipated earnings report.
The benchmark S&P 500 (^GSPC) surged 1.2% at the close of trading, effectively exiting correction territory. Simultaneously, the Dow Jones Industrial Average (^DJI) leaped approximately 1.6%, a gain exceeding 500 points, after experiencing a 1.2% decline in the previous session. The tech-centric Nasdaq Composite (^IXIC) also concluded the day on an upswing of roughly 1.2%, following a lackluster week driven by a mixed bag of results from major tech players.
All eyes are now fixed on the Federal Reserve and tech behemoth Apple, the largest entity on the S&P 500, to provide a much-needed boost in the wake of a challenging few months for the stock market. Adding to the anticipation, the U.S. jobs report for October is slated for release this Friday.
Market participants have heightened expectations that policymakers will adhere to their “higher for longer” stance, maintaining interest rates at a stable level in the central bank’s forthcoming decision this Wednesday, following a surge in the Fed’s preferred inflation gauge.
Thursday promises Apple’s quarterly earnings report, set to be disclosed after the market’s close. Analysts will be closely monitoring any repercussions stemming from China’s efforts to restrict the use of iPhones, a move that could have significant implications for the tech giant’s performance.
Investors also kept a watchful eye on Monday’s earnings report from McDonald’s, aiming to gauge U.S. consumer sentiment in light of elevated borrowing costs. The fast-food titan surpassed estimates for the third quarter, as increased menu prices propelled sales growth.
Meanwhile, benchmark oil prices experienced a dip, attributed to Israel’s measured approach in its campaign in Gaza, alleviating concerns of broader escalation in the Middle East. West Texas Intermediate (CL=F) futures declined 1.8% to $84.01 per barrel, while Brent futures (BZ=F) fell 2.5%, settling around $87.86 per barrel.
As the week unfolds, the resilience of US stocks and the pivotal decisions from the Federal Reserve are poised to shape the trajectory of financial markets, offering a glimpse into the potential stability and growth ahead.
Source: Yahoo Finance