Finance
S&P 500 and Nasdaq gain, heralding a huge week for the markets
U.S. stocks rose after temporarily turning negative on Monday, kicking off a big week filled with a Federal Reserve interest rate decision, the jobs report and Big Tech profits.
The Dow Jones Industrial Average (^IXIC) recovered earlier losses and hovered near the flatline after the blue chip index rose more than 650 points on Friday. The S&P 500 (^GSPC) gained 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.6%.
Stocks initially started the week well, after rising on Friday as investors welcomed a promising inflation outlook that reinforced expectations for rate cuts. But after a volatile series of sessions and a massive tech sell-off, surprises are in store that could test the fragile rally.
No action is expected from the Federal Reserve at the end of Wednesday’s meeting, despite signs that the U.S. economy and inflation have hit a sweet spot. Many on Wall Street see other reasons why the central bank should wait until September to act.
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The July nonfarm payrolls report due Friday – expected to show cracks in the labor market – will factor into ex-post calculations on the timing and depth of 2024 rate cuts.
Looming gains this week from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta (META) also have investors on alert, given the stock breakout that followed the first pair of “Magnificent Seven” results.
While they wait, investors will receive a barrage of quarterly results from more than 150 members of the S&P 500. McDonald’s (MCD) earnings missed across the board before the bell on Monday as consumers pulled back on spending.
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