Market Update
Following last Friday’s upward momentum, stocks continued to rise significantly during Monday’s trading session. Major averages experienced sharp increases, getting close to all-time highs.
After an initial surge, stock prices stabilized, staying firmly in positive territory. The Nasdaq climbed by 310.57 points, or 1.4 percent, reaching 22,990.53. The S&P 500 saw an increase of 71.12 points, or 1.1 percent, bringing it to 6,735.13, while the Dow Jones added 515.97 points, also up 1.1 percent, closing at 46,706.58.
Apple (AAPL) was a key player in the market’s rally, with its shares rising by 3.9%, achieving a new record closing high.
This spike in Apple’s stock followed Loop Capital upgrading their rating from “hold” to “buy,” attributing the decision to strong demand for the iPhone 17 series.
Additionally, some positive vibes may have stemmed from remarks made by National Economic Council Director Kevin Hassett, who hinted that the ongoing government shutdown might conclude this week.
Hassett expressed his expectation on CNBC’s “Squawk Box” that some moderate Democrats would be willing to collaborate to end the shutdown, which is now in its 20th day.
He also indicated that if Democrats maintain their stance of needing a funding bill that includes enhanced Obamacare tax credits, the White House might adopt “stronger steps” to force negotiations.
The rally on Wall Street followed a report from the Wall Street Journal suggesting that the Trump administration is gradually reducing certain tariffs that form the backbone of the president’s economic strategy.
The article noted that President Donald Trump has recently proposed exempting a number of items from “reciprocal tariffs” while planning to impose additional tariffs on hundreds of others in future trade agreements with various countries.
In sector news, steel stocks experienced notable gains, lifting the New York Stock Exchange Arca Steel Index by 3.5%. Cleveland-Cliffs (CLF) led the sector’s performance with a 21.5% spike after announcing plans to explore a rare earth mining operation.
A rebound in gold prices further bolstered gold stocks, as indicated by a 3.0% rise in the NYSE Arca Gold Bugs Index.
Airlines, banks, oil services, and semiconductor stocks also performed well, contributing to the overall positive sentiment across major sectors.
In international markets, stock exchanges in the Asia-Pacific region saw broad gains on Monday. Japan’s Nikkei Stock Average rose by 3.4%, while Hong Kong’s Hang Seng Index increased by 2.4%.
Major European markets also began the day on a positive note, with Germany’s DAX index climbing by 1.8%, and the UK’s FTSE100 and France’s CAC40 seeing rises of 0.5% and 0.4%, respectively.
In the bond market, U.S. Treasuries showed positive movement during a generally uneventful session. The yield on the benchmark 10-year bond, which moves in opposition to prices, dipped by 2.1 basis points to reach 3.986%.
Looking ahead, trading on Tuesday could be shaped by corporate earnings announcements, as there isn’t much economic data expected from the U.S. 3M (MMM), Coca-Cola (KO), and General Motors (GM) are set to report their quarterly results before the market opens.
