After a tumultuous week, stocks rebounded on Monday, setting the stage for a flurry of corporate earnings reports. The Dow Jones Industrial Average gained 250 points (0.7%), while the S&P 500 and Nasdaq both surged by about 1%, lifted by tech stocks recovering from recent losses.
Led by Nvidia’s 4% surge, the ‘Seven’ tech giants, which have been driving the market’s rally this year, rebounded. However, Tesla bucked the trend, falling over 3% due to concerns about slowing demand for electric vehicles and tighter margins. The automaker’s shares have plunged 43% year-to-date.
Meanwhile, U.S. crude oil prices slipped after developments in the Middle East hinted at a de-escalation in tensions between Israel and Iran. Several companies, including PepsiCo, Lockheed Martin, and Spotify, are scheduled to release their earnings reports on Tuesday.
The week will be packed with earnings releases: Meta, IBM, and Boeing on Wednesday, Intel, Alphabet, and Microsoft on Thursday, and ExxonMobil and Chevron on Friday. New home sales for March are also expected to reflect a sluggish market due to high interest rates discouraging buyers.
Lastly, policymakers will scrutinize the personal consumption expenditures (PCE) price index on Thursday. The PCE, excluding volatile food and energy costs, is the Fed’s preferred inflation gauge, and it is anticipated to demonstrate persistent inflation in March.
