US Stocks Rebound with Vigor
After a significant sell-off, US stocks rebounded on Monday, with investors eagerly anticipating a week filled with crucial events. The upcoming Federal Reserve policy decision and Apple’s earnings announcement are key highlights.
Strong Gains for Major Indices
The benchmark S&P 500 (^GSPC) closed with a substantial 1.2% gain after recently entering a correction phase. The Dow Jones Industrial Average (^DJI) surged more than 1.6%, equivalent to over 500 points, a notable recovery from its 1.2% decline in the previous session.
The tech-heavy Nasdaq Composite (^IXIC) also joined the rally, closing the day with an approximate 1.2% increase, following a challenging week marked by mixed Big Tech earnings results.
Anticipation for Key Events
Investors now turn their attention to two major catalysts: the Federal Reserve’s policy decision and Apple’s earnings report. Apple, the largest company on the S&P 500, holds the potential to uplift market sentiment after a strenuous few months. Simultaneously, the release of the US jobs report for October on Friday is eagerly awaited.
Federal Reserve’s “Higher for Longer” Approach
A surge in the Fed’s preferred inflation gauge has heightened expectations that policymakers will maintain their “higher for longer” stance, keeping interest rates steady in their upcoming decision scheduled for Wednesday.
Apple’s Quarterly Results in the Spotlight
Apple is gearing up to disclose its quarterly results on Thursday after the market’s closing. Investors closely monitor any repercussions from China’s efforts to limit iPhone usage, as it could significantly impact Apple’s performance.
Analyzing McDonald’s Earnings
Monday also witnessed the release of McDonald’s earnings, offering insights into the resilience of the US consumer amid rising borrowing costs. The fast-food giant outperformed earnings projections for the third quarter, with increased menu prices driving sales growth.
Commodities Market Reacts
Benchmark oil prices experienced a decline due to a relatively measured approach by Israel in its campaign in Gaza, which eased concerns of broader Middle East conflict escalation. This development encouraged investors to re-engage in the markets. West Texas Intermediate futures (CL=F) fell by around 3.6%, reaching $82.50 per barrel, while Brent futures (BZ=F) dipped by approximately 3%, trading at approximately $87.84 per barrel.