Sunday, July 21, 2024

Dow rises 500 points after stock roller coaster week, earnings season kicks off in high gear


Stocks rose sharply on Monday as investors weighed key earnings reports after a busy week of trading.

The Dow Jones Industrial Average rose 500 points, or 1.7%. The S&P 500 jumped 2.5%, and the Nasdaq Technology Composite Index rose 3.2%.

The S&P 500 exited its fourth negative week in five with a 1.6% loss last week. Hotter than expected inflation reading The wild price volatility has stoked the markets as investors readjusted their expectations regarding the next interest rate hike by the Federal Reserve.

Significant market volatility has led to new lows for the year, although some believe there are technical reasons why the market should see a short-term relief.

“The 200-week moving average is a serious ground of support until companies fully acknowledge or a recession officially arrives, both of which could take several more months and lead to a technical rally in the short term,” said Mike Wilson of Morgan Stanley. Note to customers.

Monday’s moves came as the British pound rose on the back of further political setbacks from the UK government. Britain’s new finance minister, Jeremy Hunt, has announced that nearly all planned tax cuts will be scrapped. The pound was up 1% at $1.127 per US dollar.

Meanwhile, third-quarter earnings season is in full swing. Investors are watching whether US companies will make any major downward revisions to their forecasts in the face of stubbornly high inflation and an economic slowdown.

American bank On Monday, it reported better-than-expected results, sending the stock in the stock up nearly 5%. Bank of New York Mellon It also posted results that beat analysts’ expectations and its shares jumped more than 5%.

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Several prominent tech names are also reporting this week, including NetflixAnd the Tesla And the IBM. Johnson & Johnson, United Airlines, AT&T, Verizon and Procter & Gamble are other big companies on investors’ radar.