Stocks rise as S&P 500 hits fresh record to kick off earnings-packed week
US stocks edged higher Monday, with the S&P 500 notching another record close as investors braced for a busy week packed with Big Tech earnings updates, a Federal Reserve rate decision, and the crucial US jobs report.
The Dow Jones Industrial Average (^DJI) drifted 0.6% higher, while the S&P 500 (^GSPC) rose 0.8% to build on last week’s wins for the indexes. The tech-heavy Nasdaq Composite (^IXIC) gained over 1%.
With five of the “Magnificent Seven” tech companies set to report earnings, it looks like a crunch week for stocks. Big Tech has driven the S&P 500’s recent record-setting gains, and the focus will be on whether their AI efforts and layoffs are paying off.
Microsoft (MSFT) and Alphabet (GOOGL, GOOG) lead out the pack on Tuesday, with Apple (AAPL), Amazon (AMZN), and Meta (META) among the 100-plus flood of corporates on the docket.
At the same time, investors are preparing for the Fed’s policy decision on Wednesday after data last week showed inflation cooling and the economy robust. While policymakers are expected to hold interest rates steady at 5.25%, the market will listen closely to Chair Jerome Powell’s comments for clues as to when cuts could begin amid a scaling back on March bets.
Also coming is Friday’s US jobs report for December, which will factor into calculations of whether the Fed has managed a “soft landing.”
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Oil prices fell as concerns about an impact on Chinese demand vied with supply risks from escalating Middle East tensions after a drone attack on US forces. US benchmark WTI futures (CL=F) fell more than 1% to settle at $76.78 a barrel, while global benchmark Brent futures (BZ=F) also closed lower at $82.40 a barrel.
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Tech leads stock gains
Tech stocks led Monday’s modest gains in afternoon trading, helping lift the Nasdaq Composite (^IXIC) higher by 0.6%.
Tesla (TSLA) shares jumped as much as 3%, rebounding from a steep sell-off last week after the EV giant offered a downbeat production outlook for 2024.
Nvidia (NVDA), Meta (META) and Microsoft (MSFT) all rose roughly 1%. Apple (AAPL) was the only stock among the “Magnificent Seven”group that was trading lower, down about 0.5%.
This is expected to be a jam packed week as investors anticipate big tech earnings. The markets will also be digesting Wednesday’s rate decision from the Federal Reserve and Friday’s January jobs report.
Heat map of Nasdaq 100 at 2:55 PM Eastern on January 29. -
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Read More: Stocks rise as S&P 500 hits fresh record to kick off earnings-packed week