Wall St stocks end higher with major corporate earnings in view…..
Wall Street stocks ended higher on Monday following a market sell-off in previous sessions as investors eyed a busy week for quarterly results from key companies that would provide a glimpse of the U.S. economy’s health. The benchmark S&P 500 <.SPX> and the Nasdaq <.IXIC> rebounded from a decline over the past six sessions which had been caused by investors re-evaluating their expectations on interest rate cuts in the wake of strong economic data, geopolitical tensions, persistent inflation and commentary from Federal Reserve officials.
All 11 S&P 500 sectors closed higher, with technology <.SPLRCT> and financial stocks <.SPSY> leading gains. Markets were gearing up for quarterly results from mega cap companies this week, including some of the so-called Magnificent Seven stocks such as Tesla, Meta Platforms, Alphabet and Microsoft.
Money markets are pricing in only about 41 basis points (bps) of rate cuts this year, down from about 150 bps seen at the beginning of the year, according to LSEG data. In addition to top corporate earnings, markets are also awaiting the release later this week of the March personal consumption expenditure (PCE) data – the Fed’s preferred inflation gauge – to further ascertain the monetary policy trajectory. Fed policymakers are in a media blackout period ahead of their policy meeting on May 1.
According to preliminary data, the S&P 500 <.SPX> gained 44.25 points, or 0.89%, to end at 5,011.48 points, while the Nasdaq Composite <.IXIC> gained 169.30 points, or 1.11%, to 15,451.31. The Dow Jones Industrial Average <.DJI> rose 261.11 points, or 0.69%, to 38,247.51. Mega cap growth stocks ended higher, with gains in Alphabet, Amazon.com and Apple . Nvidia rebounded from a 10% drop in the previous session. Tesla shares dropped as the electric vehicle maker cut prices in a number of its major markets, including China and Germany, following price reductions in the United States. Cardinal Health fell sharply after the drug distributor said its contracts with UnitedHealth Group’s OptumRx, one of its largest customers, will not be renewed when they expire at the end of June.
Reporting by Chibuike Oguh in New York; Additional reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru Editing by Matthew Lewis.
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