Tech Earnings and Economic Data Drive U.S. Stock Rally: What Investors Need to Know
Staff Editor US Stocks Rally as Investors Eye Tech Earnings and Economic Data
U.S. stocks surged on Monday as investors eagerly anticipate a week filled with crucial earnings reports from major tech companies and key economic data releases. The S&P 500 closed up 0.27% at 5,823.56, while the Dow Jones Industrial Average gained 0.65%, ending at 42,387.57. The tech-heavy Nasdaq composite also saw an increase, closing 0.26% higher at 18,567.19.
This week, over 90 S&P 500 companies are set to report their third-quarter earnings, with particular attention on tech giants Meta Platforms, Microsoft, Apple, Amazon, and Alphabet. These five companies, collectively valued at approximately $12 trillion, are expected to provide crucial insights into the tech sector’s performance and future outlook.
Bank of America’s Savita Subramanian noted a shift in market focus from cyclicals to artificial intelligence and mega-cap tech stocks, with AI monetization being a key area of interest. So far this earnings season, 37% of S&P 500 companies have reported, with 78% surpassing profit estimates and 58% exceeding revenue expectations.
In addition to earnings reports, investors are closely watching several important economic indicators scheduled for release this week. On Wednesday, third-quarter GDP figures will be announced, with the Atlanta Fed’s GDPNow Tracker projecting a 3.3% growth rate. Thursday will see the release of the PCE index, the Federal Reserve’s preferred inflation measure, with economists estimating a year-over-year increase of 2.1%. The week will conclude with the October jobs report on Friday, which is expected to show an addition of 110,000 jobs, a significant decrease from September’s 245,000 new positions.
In other market developments, Trump Media stock experienced a surge following a rally by former President Donald Trump. Oil prices, however, dropped over 6% due to geopolitical tensions not impacting oil facilities. West Texas Intermediate crude oil fell 5.54% to $67.80 per barrel, while Brent crude decreased 5.50% to $71.87 per barrel.
The bond market saw movement as well, with the 10-year Treasury yield increasing by 3 basis points to 4.274%. In the cryptocurrency space, Bitcoin rose by 2.49% to $69,638.
As the week unfolds, market participants will be closely monitoring these earnings reports and economic indicators for clues about the overall health of the U.S. economy and potential future market trends.
