US Stocks Gain as Big Week Begins with Fed Rate Decision, Jobs Report, and Tech Earnings
US stocks gained ground on Monday after initially turning negative, setting the stage for a busy week ahead. The Dow Jones Industrial Average recovered from earlier losses to hover near the flatline, following a surge of over 650 points on Friday. The S&P 500 and Nasdaq Composite also posted gains of 0.2% each.
Investors welcomed a promising inflation reading that solidified expectations for interest-rate cuts, but the market remains on edge after a volatile run of sessions and a significant tech sell-off. The Federal Reserve is not expected to make any moves at its meeting this week, with many analysts predicting a wait-and-see approach until September.
The upcoming July nonfarm payrolls report is expected to shed light on the state of the job market and could influence the timing and depth of future rate cuts. Additionally, Big Tech earnings from companies like Apple, Microsoft, Amazon, and Meta are on the horizon, adding to the anticipation and uncertainty in the market.
While investors await these key events, they will also be closely monitoring quarterly results from over 150 members of the S&P 500. McDonald’s reported earnings that missed expectations, signaling a pullback in consumer spending.
Overall, the market is bracing for a week filled with crucial economic data and corporate earnings reports that could either bolster the current rally or put it to the test. Stay tuned for more updates as the week unfolds.