Ahead of a busy week that included Apple’s earnings report, the Federal Reserve’s rate decision, and a jobs report, traders attempted to push the S&P 500 out of correction territory on Monday.
Although the Nasdaq Composite increased by 0.6%, the overall index rose by 0.7%. 1.2%, or 381 points, were added to the Dow Jones Industrial Average.
S&P 500 sector last week had a 2% increase, although communication services firms outperformed. Meta Platforms and Alphabet, two large-cap tech companies, both had gains of roughly 2%.
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.
The Treasury Department will release its economic statement and quarterly financing forecasts on Monday. This document will include the government’s borrowing requirements for the ensuing three quarters. The amount of borrowing startled investors when the Treasury last presented its statement in July. This time around, investors are hoping that expectations are more fairly priced.
The Federal Reserve is expected to maintain its benchmark interest rate at its current level on Wednesday, when the decision is expected to be made. 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.
Source (CNBC)
