The stock market rebounded after last week’s decline, helped by easing geopolitical tensions and upcoming earnings reports from major companies. The Dow Jones Industrial Average rose 0.7%, the S&P 500 added 0.9%, and the Nasdaq Composite gained 1.1%. Investors had been concerned about higher interest rates and mixed quarterly results, but this week’s news seems to have eased those concerns. However, Tesla shares continued to decline after the company cut prices in China and Germany, and Verizon disappointed with its quarterly revenue growth. Several major events could cause choppy trading in the days ahead, including earnings reports from Big Tech companies and the release of inflation data.
Results for: S&P 500
The S&P 500 rallied on Monday, regaining momentum from its biggest weekly loss since March 2023. Investors anticipate upcoming earnings reports from major tech firms like Tesla, Facebook-owner Meta Platforms, Microsoft, and Google-owner Alphabet. Tesla shares decreased, despite the EV manufacturer announcing fresh price reductions in China and Germany, after similar decreases in the United States. Verizon Communications fell despite reporting better-than-expected performance in the first quarter, clouded by weaker cash flow. Zions Bancorporation’s stock rose after exceeding quarterly estimates, driven by reduced credit provisions. The 2-Year Treasury yield momentarily reached 5%, influenced by expectations for upcoming economic data and the Fed’s PCE price index. Salesforce withdrew from acquisition talks with Informatica, while Matterport’s stock soared due to a takeover offer from CoStar Group. Cryptocurrency-related stocks witnessed gains as Bitcoin surged following its halving event.
US stocks rebounded strongly on Monday after a recent downturn, buoyed by easing tensions in the Middle East and upcoming tech earnings reports. The Dow Jones Industrial Average surged over 400 points, while the S&P 500 and Nasdaq Composite climbed 1.4% and 1.6% respectively.
Goldman Sachs projects a 9% rise in S&P 500 cash spending for 2024, totaling $3.7 trillion. This increase is primarily driven by a 15% rise in mergers and acquisitions and a 13% increase in share buybacks, suggesting greater willingness from companies to allocate their resources.
Analysts at Goldman Sachs expect total cash spending by S&P 500 companies to grow by 9% to $3.7T this year, driven by cash M&A and buybacks. Despite higher interest rates, S&P 500 companies have increased their cash balances by 7% year-over-year. Analysts forecast S&P 500 EPS to grow by 8% in 2024 and 6% in the following year, providing companies with more cash to spend.
According to Citi, the energy sector is expected to maintain its strong performance due to elevated oil prices driven by geopolitical risks. The sector has outpaced the broader market this year, driven by rising energy demand and production cuts from OPEC+. While the oil market has cooled following tensions between Israel and Iran, prices remain significantly higher than last year. Citi analysts foresee continued support for oil prices in the short term due to global economic growth and geopolitical uncertainties, despite reduced demand growth projections for 2025.
Stocks edged higher on Monday as investors sought to rebound from last week’s losses, with the S&P 500 and Nasdaq posting modest gains. The moves come as Middle East tensions ease and traders anticipate a busy week of tech earnings. The Dow Jones Industrial Average also rose, while gold prices fell.
U.S. stocks opened higher on Monday, with the Dow Jones gaining over 100 points. The S&P 500 and Nasdaq also rose. Leading the gains were information technology shares, while energy shares fell. The Chicago Fed National Activity Index increased to +0.15 in March, topping market estimates. Moolec Science SA, NewGenIvf Group Limited, and SuperCom Ltd. were among the top gainers, while Vaxxinity, Inc., Hepion Pharmaceuticals, Inc., and Connexa Sports Technologies Inc. were among the top losers.
US stock indices closed lower last week, with the Nasdaq Composite falling for its sixth consecutive session, marking its longest losing streak in over a year. The S&P 500 also experienced a downturn, while the Dow Jones Industrial Average rose slightly. The decline was driven by a drop in Nvidia, geopolitical tensions, and persistent inflation.