US stocks stepped broadly higher on Monday, ahead of a big week filled with a Federal Reserve rate decision, the jobs report, and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) erased early trading gains, coming off a surge of over 650 points for the blue-chip index on Friday. The S&P 500 (^GSPC) added about 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.5%.
Stocks kicked off the week on the front foot after surging on Friday, as investors welcomed a promising inflation reading that cemented bets for interest-rate cuts. But after a volatile run of sessions and a huge tech sell-off, the watch is on for surprises that could put the fragile rally to the test.
No move is expected from the Federal Reserve at the end of its meeting on Wednesday, despite signs the US economy and inflation have hit a sweet spot. Many on Wall Street see other reasons for the central bank to wait until September to act.
Read more: 32 charts that tell the story of markets and the economy right now
The July nonfarm payrolls report that follows on Friday — expected to show cracks in the jobs market — will play into after-the-fact calculations on timing and depth of rate cuts in 2024.
Looming earnings this week from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta (META) also have investors on alert, given the stock wipeout that followed the first pair of “Magnificent Seven” results.
While they wait, investors will get a flood of quarterly results from over 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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A morning chart to leave you thinking
And so begins an insanely busy week for investors.
Investors start the week bruised by the surprise tech sell-off last week, which may just be getting going, reports Yahoo Finance’s Seana Smith.
RBC strategist Lori Calvasina puts some context around the tech stall-out below.
The hottest stocks begin to stall in July. (RBC)
Source Agencies
