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US stocks closed higher on Monday, ending a six-day losing streak for the S&P 500.
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Traders are gearing up for earnings from high-profile firms, trying to find a modern catalyst to restart the first-quarter rally.
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Tesla will report earnings after the closing bell on Tuesday, followed by Meta on Wednesday.
Stocks rallied on Monday, with the S&P 500 rising nearly 1% to snap a six-day streak of losses.
Investors are turning their attention to earnings reports due up from high-profile firms. Tesla will report Tuesday after the closing bell, with Wall Street analysts eyeing potentially more pain for the automotive company amid the stock’s 43% decline already in 2024.
“Facing an investment thesis pivot and a sea of uncertainty, this Tesla call is extra highly anticipated,” Barclays analysts wrote. “Expect negative catalyst.”
The narrative out there was downbeat, with major averages all losing ground last week amid a weakening macro outlook. The market’s view of rate cuts in 2024 has dimmed amid stubbornly high inflation and hawkish Fedspeak that has recalibrated forecasts for monetary policy.
A slew of Fed officials delivered comments last week, with the tone decidedly less dovish than recent remarks, and most indicated that the central bank was in a rush to cut rates of interest. The dearth of movement from the Fed makes this earnings season particularly essential as traders struggle to rescue a strong first-quarter rally that has fizzled in April.
Nevertheless, a brand latest inflation reading could possibly be one other source of hysteria on Friday, when markets will get essentially the most recent personal consumption expenditures data, which is the Fed’ preferred inflation gauge.
“Friday’s PCE inflation figures will likely be highly essential on this regard, with markets bracing for a modest uptick throughout the headline and a delicate drop throughout the core number,” Matthew Ryan, head of market strategy at financial services firm Ebury wrote in a note on Monday.
Here’s where US indexes stood on the 4 p.m. closing bell on Monday:
Here’s what else is going on:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil edged higher by 0.1% to $83.02 a barrel. Brent crude, the international benchmark, dipped 0.3% to $87.05 a barrel.
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Gold climbed tumbled nearly 3% $2,343.70 an oz.
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The ten-year Treasury yield edged as much as 4.617%.
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Bitcoin edged higher by 2.4% to $66,321.
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