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.
BofA Securities analysts advise buying into geopolitical shocks, citing historical data suggesting that markets recover quickly from such events. They caution, however, that escalation in the Middle East could pose a risk and note the potential for stagflation due to oil shocks, which have historically accompanied geopolitical turmoil.
Nvidia Corp and Advanced Micro Devices, Inc stocks witnessed a partial recovery on Monday following a significant selloff on Friday. Amidst concerns over the Federal Reserve’s interest rate hikes and geopolitical tensions, investors had grown wary of stocks that had previously benefited from the artificial intelligence boom. However, recent checks suggest that demand for AI-related products and services remains strong, with key players like Nvidia and AMD poised to benefit.
Retail investors are increasingly utilizing demat accounts to diversify their portfolios and secure their financial futures. This shift is attributed to the accessibility and user-friendliness of mobile trading platforms, easy access to financial information, and regulatory efforts promoting stock market awareness. To maximize the benefits of long-term investing, investors should utilize their demat accounts to invest in a diversified portfolio, implement SIPs in mutual funds, adopt a buy-and-hold approach, stay updated with market trends, and regularly monitor their investment portfolios.
US stock futures rose on Monday, pointing to a potential market recovery after a recent selloff. Investors anticipate a series of earnings reports from tech giants, including members of the “Magnificent Seven” (Apple, Amazon, Tesla, Nvidia, Microsoft, Alphabet, and Meta). Tesla’s earnings will be closely watched after a challenging start to the year, while Google’s parent company, Alphabet, has outperformed due to its strong advertising business and artificial intelligence focus. Amazon, Microsoft, and Meta are also reporting earnings this week, with Apple and Nvidia expected to follow in May. Economic data releases include new-homes sales and weekly jobless claims.
