NASDAQ-Adv: 1,616 Dec.: 2,565 NYSE-Adv: 1,869 Dec.: 2,049
(Source: Nasdaq)
U.S. stock indexes rose on Monday, approaching record highs after a recent run of gains, as investors awaited key inflation figures this week to gauge the likelihood of interest rate cuts in 2024.
Indices are back near record highs hit in March, buoyed by better-than-expected earnings reports and signs of a cooling labor market that have fueled bets of one or two rate cuts from the Federal Reserve. from the United States this year.
Monday's gains follow a multi-week winning streak for major benchmark indices.
Long-awaited inflation data on Wednesday is expected to show that core consumer prices rose 0.3% month-on-month in April, for a 3.6% annual increase, economists forecast in a survey of Reuters.
"I don't think anyone expects the Fed to say we're going to raise rates, even if the number was higher than expected, so that's off the table," said Joe Saluzzi, co-head of equity trading at Themis Trading. . in Chatham, New Jersey.
"It's just a question of how long they will last and if there will be a cut at some point during the year."
Federal Reserve Vice Chairman Phillip Jefferson said Monday that he supports keeping interest rates steady until it is clear that price pressures are easing.
Traders are currently pricing in 43 basis point (bp) rate cuts from the Federal Reserve by the end of 2024, according to the LSEG Rate Odds App, with odds of a September cut of at least 25 bp by 65%.
To better assess the path of the Federal Reserve's rates, investors will focus on a number of other economic readings this week, including monthly producer prices, retail sales and weekly jobless claims, as well as corporate earnings.
Major companies including Home Depot (HD.N) Opens new tab, Walmart (WMT.N) Opens new tab and Cisco (CSCO.O) Opens new tab are reporting this week.
Of the 459 S&P 500 companies that reported as of Friday, 77.3% beat analysts' earnings estimates, according to LSEG data. The long-term average is 66.7%.
At 11:24 a.m., the Dow Jones Industrial Average (.DJI), opens a new tab rose 47.17 points, or 0.12%, to 39,560.01, the S&P 500 (.SPX), opens a new Tab gained 2.90 points, or 0.06%, to 5,225.58. and the Nasdaq Composite (.IXIC), opens in a new tab gained 42.66 points, or 0.26%, to 16,383.53.
Shares of video game retailer GameStop (GME.N), opens a new tab rose 65% after โRoaring Kitty,โ a former insurance firm marketer credited with sparking the rally in shares of memes of 2021, will return to X.com after a three-year hiatus. .
Other heavily shorted names, including AMC (AMC.N), opens a new tab, rose 32% and Koss Corp (KOSS.O), opens a new tab soared 25%.
Alphabet (GOOGL.O) opens new tab fell 1.5% as Microsoft-backed OpenAI appeared set to announce its artificial intelligence (AI)-powered search product on Monday.
Apple (AAPL.O), opens a new tab added 1.6% after a report said the company had closed a deal with OpenAI, maker of ChatGPT, to use the startup's technology in the iPhone.
Issues that rose exceeded those that fell by a ratio of 2.26 to 1 on the New York Stock Exchange and 1.99 to 1 on the Nasdaq.
The S&P 500 posted 32 new 52-week highs and no new lows, while the Nasdaq posted 125 new highs and 61 new lows.
Source: Reuters (Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru; Editing by Devika Syamnath and Shinjini Ganguli)
