U.S. stocks fell on Monday after heavy losses in pre-market trading as easing tensions in the Middle East boosted risk appetite and investors looked forward to a volatile week with major tech results and important inflation trends. has soared in volatile trading.
The Dow Jones Industrial Average rose 430 points, or 1.1%, to $38,417, the S&P 500 rose 1.4% and the Nasdaq rose 1.6%.
The Nasdaq and S&P 500 ended lower on Friday, weighed down by Netflix stock following a weak quarterly earnings report, with both indexes suffering a sixth straight session of decline last week, the longest since October 2022.
Some large-cap growth stocks rose modestly, with Alphabet, Amazon and Apple rising 0.3% to 0.7%.
Nvidia rose 2.4%, recovering from a 10% decline in the previous session.
“This is an oversold flash relief rally in the face of a situation where the market has gotten a little ahead of itself. Traders are trying to find any bargains,” said Dakota Wealth Senior Portfolio Manager. Manager Robert Pavlik said.
All eyes will be on Tesla, MetaPlatform, Alphabet and Microsoft this week as they prepare to release their quarterly numbers. Their performance could further test the rally in U.S. stocks.
The risk-on mode was also confirmed by the fact that Iran’s foreign minister said on Friday that Tehran’s government was investigating the overnight attack, downplaying the attack and adding that no link to Israel has been proven so far. was.
Stocks have been selling off in recent days as market participants readjust their expectations for Federal Reserve interest rate cuts following a series of positive economic indicators that suggest sustained inflationary pressures.
Money markets are currently pricing in interest rate cuts of just about 41 basis points (bp) this year, down from about 150 basis points (bp) at the beginning of the year, according to LSEG data.
This week, the March Price Consumer Expenditure (PCE) index, the Fed’s preferred measure of inflation, will be considered for further confirmation of the trajectory of monetary policy.
Federal Reserve policymakers went into media blackout ahead of their latest policy meeting on May 1st.
Among individual stocks, Tesla fell 4.3% as the electric car maker cut prices in a number of major markets, including China and Germany, following price cuts in the United States.
Cardinal Health fell 5.2% after the company announced its contract with one of its largest customers, UnitedHealth Group’s OptumRx, will not be renewed as it expires at the end of June.
