Stocks were little changed at the finish of the trading session on Monday, despite having their best week of the year, as investors remained hopeful that the Federal Reserve is nearing the end of its tightening cycle. The tech-heavy Nasdaq Composite (IXIC) rose 0.3%, extending a significant streak of gains, while the benchmark S&P 500 …
Stocks were little changed at the finish of the trading session on Monday, despite having their best week of the year, as investors remained hopeful that the Federal Reserve is nearing the end of its tightening cycle. The tech-heavy Nasdaq Composite (IXIC) rose 0.3%, extending a significant streak of gains, while the benchmark S&P 500 (GSPC) rose roughly 0.2%. The Dow Jones Industrial Average (DJI) rose 0.1%, or around 35 points. The 10-year Treasury note (TNX) yield increased by roughly 10 basis points to trade near 4.66%.
The main US market indexes rose on Friday as US job growth slowed more than expected and pay inflation moderated, bolstering expectations for a halt to Fed interest rate hikes that continued into the new week. Investors will be looking for confirmation when many Fed officials speak this week, including Chair Jerome Powell twice. Regional Fed Presidents John Williams and Raphael Bostic are scheduled to speak.
Some on Wall Street have warned that the excitement may be overstated and that equities will be volatile. Last week’s stock rebound, according to Morgan Stanley strategist Mike Wilson, “looks more like a bear market rally than the start of a sustained upswing.”
Meanwhile, the market is still expecting a steady stream of quarterly results, while the economic calendar remains rather calm. The centrepiece is Disney’s (DIS) earnings report, which is scheduled on Wednesday.
Oil prices rose after leading exporters Saudi Arabia and Russia reaffirmed last weekend that their voluntary further production restrictions would be maintained. The US benchmark, West Texas Intermediate oil futures (CL=F), jumped more than 1% to just under $82 a barrel, while global benchmark Brent crude futures (BZ=F) increased slightly less than 1% to just under $86 a barrel.
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