Monday saw gains in US markets as investors got ready for a busy week that included an important Federal Reserve rate decision, a jobs report, and Apple’s earnings release.
252 points, or 0.8%, were added to the Dow Jones Industrial Average. Along with the Nasdaq Composite, the S&P 500 increased by 0.7%.
The financial services business SoFi Technologies reported a solid third-quarter sales beat and increased its full-year estimate, which sent its shares up more than 12%.
These actions are in response to last week’s decline in the S&P 500. After losing 2.5% for the week, the overall index dropped more than 10% from its closing high for 2023. With a 3.2% decrease for October, it is on track to have its third consecutive negative month—a first since the epidemic struck in 2020.
Christopher Harvey, the head of equities strategy at Wells Fargo Securities, wrote on Monday, “We expect an oversold recovery sparked by a less-hawkish Fed and a market that has adjusted to Treasury’s increased liquidity needs.”
On Wednesday, the Federal Reserve will make a decision that is expected to keep its benchmark interest rate at its current level. As the primary cause of this stock market drop, rising interest rates, investors will be hoping the Fed hints it may be done hiking rates. By 2023, traders anticipate that rate increases by the Fed will end.
Although it began the week above 5%, the yield on the 10-year Treasury note was trading at 4.9% on Monday. The October employment data is out on Friday, and investors are expecting a slowdown in the labour market so the Fed can feel safe in keeping rates on hold for the remainder of the year.
Source (CNBC)
