US stocks staged an impressive recovery on Monday, bouncing back from a turbulent week that rattled financial markets, and investor sentiment soared in anticipation of a pivotal week, driven by both the impending policy announcement by the Federal Reserve and the highly anticipated Apple earnings report.
The benchmark S&P 500 (^GSPC) displayed resilience, surging 1.2% at the closing bell, officially exiting correction territory after recent turbulence. Meanwhile, the Dow Jones Industrial Average (^DJI) experienced a remarkable ascent, posting gains of about 1.6%, equivalent to an impressive 500 points, after suffering a 1.2% loss during the previous close. The tech-centric Nasdaq Composite (^IXIC) also made a strong recovery, ending the day with gains of approximately 1.2%, putting to rest the anxieties of a downbeat week driven by mixed Big Tech results.
The collective eyes of investors are now firmly fixed on the Federal Reserve and Apple Inc., the largest company on the S&P 500, in the hopes that these two giants will help reinvigorate the market after what has been a challenging period for stocks over the past few months. Additionally, anticipation is building for the upcoming U.S. jobs report for October, scheduled for release this Friday.
Market participants have heightened expectations that the Federal Reserve will adhere to their “higher for longer” stance, choosing to maintain interest rates at their current level during the central bank’s decision scheduled for this Wednesday. This sentiment follows a surge in the Fed’s preferred inflation metric, which has convinced many that stability in interest rates remains the preferred path.
Thursday promises to be a pivotal day as well when Apple Inc. releases its quarterly results after the close of the market. Investors are particularly keen on assessing the potential impact of China’s recent measures to restrict the use of iPhones, a development that could ripple through global markets. Furthermore, market participants are closely monitoring McDonald’s earnings from Monday, as these results may offer valuable insights into U.S. consumer sentiment, especially in the face of rising borrowing costs. Impressively, the fast-food giant exceeded expectations for the third quarter, as increased menu prices significantly boosted sales growth.
In a separate market development, benchmark oil prices displayed some volatility. The cautious approach adopted by Israel in its campaign in Gaza has somewhat eased fears of an escalation of conflict in the Middle East. West Texas Intermediate (CL=F) futures experienced a decline of 1.8%, closing at $84.01 per barrel, while Brent futures (BZ=F) witnessed a more substantial drop of 2.5%, settling around $87.86 per barrel.
Despite the recent market turbulence and uncertainties, it is essential to note that the US stock market is still in a robust bull-run, with all three major indexes hovering near their annual highs.
As the week unfolds, the intricate dance between US stocks and the Federal Reserve promises to shape the financial landscape, offering insights into the market’s resilience and its response to critical policy decisions.
Source: Yahoo finance
