US markets moved up Monday, with the S&P 500 setting another record finish as investors braced for a hectic week that included Big Tech earnings releases, a Federal Reserve rate decision, and the critical US employment report.
The Dow Jones Industrial Average (^DJI) increased by 0.6%, while the S&P 500 (^GSPC) increased by 0.8%, continuing the indexes’ gains from the previous week. The tech-heavy Nasdaq Composite (^IXIC) increased by almost 1%.
With five of the “Magnificent Seven” IT giants scheduled to report earnings, it appears to be a critical week for stocks. Big Tech has propelled the S&P 500’s recent record-breaking gains, and the question will be whether their AI initiatives and layoffs are paying off.
On Tuesday, Microsoft (MSFT) and Alphabet (GOOGL, GOOG) led the pack, with Apple (AAPL), Amazon (AMZN), and Meta (META) among the more than 100 corporates on the docket.
At the same time, investors are bracing for the Fed’s policy decision on Wednesday, following statistics released last week that showed inflation slowing and the economy strong. While policymakers are likely to keep interest rates unchanged at 5.25%, the market will pay particular attention to Chair Jerome Powell’s comments for signals as to when reduction may begin, as bets on March fall.
The Dow Jones Industrial Average (DJI) moved higher on Monday, while the S&P 500 (GSPC) climbed 0.6% to open the week with fresh record closing. The Nasdaq 100 (^NDX), a tech-heavy index, also jumped 1%.
Tech stocks led the session advances, with Tesla (TSLA) up 4%. Nvidia (NVDA), Meta (META), and Microsoft (MSFT) all closed at record highs, up around 1% each.
Apple (AAPL) was the only stock in the “Magnificent Seven” group to close slightly lower, down around 0.4%.
Investors are anticipating a busy week ahead of Big Tech results. The markets will also be digesting Wednesday’s Federal Reserve rate decision and Friday’s January jobs data.
The US tax filing season begins on Monday, when the Internal Revenue Service accepts and processes 2023 federal tax returns.
Taxpayers who do not seek an extension have until April 15 to file.
The IRS typically sends refunds within three weeks of electronically filing taxes – much faster if you choose direct deposit rather a paper cheque.
Rebecca Chen of Yahoo Finance discusses more crucial information and dates to keep in mind while paying taxes.
The Nasdaq Composite (^IXIC) rose 0.6% in Monday afternoon trade, powered by tech firms.
Tesla (TSLA) shares rose as much as 3%, recovering after a sharp sell-off last week after the EV giant issued a dismal production forecast for 2024.
Nvidia (NVDA), Meta (META), and Microsoft (MSFT) all gained about 1%. Apple (AAPL) was the only stock in the “Magnificent Seven” group trading lower, down around 0.5%.
This is going to be a busy week as investors await Big Tech results. The markets will also be digesting Wednesday’s Federal Reserve rate decision and Friday’s January jobs data.
Another senior Goldman Sachs (GS) executive is departing.
Jim Esposito, co-head of Goldman’s global banking and markets group, will quit after almost three decades, according to a document obtained by Yahoo Finance. The Wall Street Journal was the first to disclose the departure.
According to Yahoo Finance’s David Hollerith, Esposito’s resignation raises additional doubts about the battle to succeed CEO David Solomon and concludes a period of high-profile management and board changes for the Wall Street titan.
On Monday, the premium electric car maker’s stock soared up to 21%, making it the second most popular trending ticker on Yahoo Finance.
The startup is scheduled to disclose quarterly results on February 21. Lucid stock has no Wall Street analyst buy ratings, 12 Holds, and five Sells.
Short interest in the stock is little over 26% of the float, making it prone to
The stock market boom is still primarily about technology.
Strategists have called for a widening of the market rally, but major tech companies are anticipated to lead S&P 500 profit growth in Q4, according to new FactSet data.
As Yahoo Finance’s Josh Schafer shows, five of those businesses — Apple, Alphabet, Microsoft, Amazon, and Meta — are expected to post quarterly earnings this week.
Earnings for Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Nvidia (NVDA) are predicted to increase by a combined 53.7% in the fourth quarter. Meanwhile, the remaining 494 S&P 500 firms are anticipated to fall 10.5%.
Oil prices dipped on Monday, reversing an earlier advance after Iran-backed extremists murdered three US soldiers in Jordan over the weekend.
Crude prices plummeted after a Hong Kong court ordered Evergrande, a Chinese property developer, to liquidate. The judgement determined that the corporation, which was previously valued around $50 billion, was incapable of carrying out its reorganisation plan.
West Texas Intermediate (CL=F) declined more than 1%, trading at $77 per barrel. Brent (BZ=F), the worldwide benchmark price, also fell, trading below $83 a barrel.
Crude oil prices surged more than 6% last week as traders assessed the impact of a further escalation of hostilities in the Middle East. Iran-backed Houthi militants have continued to strike vessels in the Red Sea area, pushing cargo businesses to postpone.
The major averages remained stable on Monday morning, with tech and consumer discretionary sectors rising as energy-related companies lagged.
The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) have risen above the flatline. The tech-heavy Nasdaq (^IXIC) also increased modestly.
Meta (META) reached an intraday high as Microsoft (MSFT) and Amazon (AMZN) climbed ahead of their earnings reports this week.
Meanwhile, the Energy Select Sector ETF (XLE) underperformed as shares of Chevron (CVX), ExxonMobil (XOM), and Occidental Petroleum (OXY) dipped somewhat.
Oil fell on Monday as concerns about the health of the Chinese economy outweighed fears over growing tensions in the Red Sea region.