On Monday, Wall Street experienced modest gains in an effort to recover from last week's pullback, as geopolitical tensions in the Middle East showed signs of easing. Attention is now turning towards the upcoming earnings releases from major technology companies.
The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each rose by 0.3%, with the Dow increasing by 110 points. Both the S&P 500 and Nasdaq are trying to break a six-day losing streak, having dropped 3.1% and 5.5% respectively last week.
U.S. crude prices declined by over 1% following Iran's assurance of not escalating its conflict with Israel, easing investor worries about potential inflation pressures that might discourage the Federal Reserve from rate cuts.
Thierry Wizman of Macquarie stated, "There are two dynamics at play improving global stock market sentiment: the decrease in gold and oil prices, and the USD's stability. Diminished fears of a broader Middle-East conflict are likely why U.S. bond yields are rising today."
Stocks are advancing in anticipation of significant earnings reports, particularly from the 'Magnificent Seven' tech firms. Notably, Nvidia saw a 2.2% increase after a nearly 14% decline last week, and Arm Holdings also gained over 5%.
Major companies such as Tesla, Meta Platforms, American Airlines, Microsoft, and Alphabet are poised to release their earnings this week, with key reports expected from Tesla on Tuesday after the market closes, Meta on Wednesday, and both Intel and Microsoft on Thursday.
Later this week, significant economic indicators are scheduled, including Thursday's GDP announcement and Friday's key inflation data when the Commerce Department will release the PCE price index for March, a critical measure for the Fed.
The Federal Reserve's next meeting is set from April 30 to May 1, currently in a quiet period before the meeting.
Source: cnbc.com
