Gains in megacap growth firms propelled Wall Street’s main stock indexes on Monday, ahead of a busy week filled with major central banks’ interest rate decisions and earnings releases, including those from the Federal Reserve.
Prominent technology and growth brands, like Tesla, Alphabet, Amazon.com, Nvidia, and Meta Platforms, had increases ranging from 1.3% to over 3%.
With gains of almost 1.5% apiece, communication services and consumer discretionary were the top-performing main S&P 500 sub-indices, while the technology sector had a 1% increase.
After the chipmaker predicted lower-than-expected sales and earnings for the fourth quarter, Onsemi fell 14.5%.
Later in the week, a number of significant Wall Street firms would report, including Apple, Pfizer, and Eli Lilly.
The CME Group’s FedWatch tool indicates that at the conclusion of its policy meeting on November 1, the Fed is largely likely to leave interest rates steady.
Nonetheless, certain economic sectors have shown resilience, raising worries that the central bank may indicate a readiness to maintain existing rates for a longer period of time than first thought.
One of the most recent measures of the strength of the biggest economy in the world will be the non-farm payrolls data for October, which is coming on Friday.
Later in the week, the Bank of Japan and the Bank of England would also release their rate decisions.
Three days after it started ground operations in the Palestinian territory, Gaza’s major northern metropolis was viewed from both the east and the west on Monday.
Before this ground attack on Friday, markets were extremely risk averse. Thus, on the whole, this is positive news for markets as the attack is not as strong as everyone had anticipated, according to State Street Global Markets multi-asset analyst Anthi Tsouvali.
This month, U.S. equities have been negatively impacted by geopolitical worries and an increase in Treasury rates, which has caused the benchmark S&P 500 to fall around 10% from its July intraday high.
The S&P 500 was up 41.00 points, or 1.00%, at 4,158.37 at 9:38 a.m. ET, while the Dow Jones Industrial Average was up 285.36 points, or 0.88%, at 32,702.95.
In the meanwhile, when it releases its financing plans this week to pay a growing budget deficit, the U.S. Treasury is expected to increase the amount of auctions for bills, notes, and bonds in the fourth quarter. An increase in rates later on might put more strain on equities.
As the memory chip manufacturer revealed intentions to split into two independent public companies, Western Digital Corp surged 8.1%, while Revvity Inc fell 15.1% after lowering its full-year outlook.
On the NYSE and the Nasdaq, advancers exceeded decliners by a ratio of 5.45 to 1 and 2.95 to 1, respectively.
The Nasdaq registered eight new highs and 79 new lows while the S&P index recorded no new 52-week highs and 12 new lows.