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U.S. stocks closed higher on Monday, ending a six-day losing streak for the S&P 500.
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Traders are bracing for earnings from leading companies, looking for a new catalyst to jump-start the first-quarter rally.
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Tesla will report results after the closing bell on Tuesday, followed by Meta on Wednesday.
Stocks rallied Monday, with the S&P 500 rising nearly 1%, ending a six-day losing streak.
Investors are turning their attention to expected earnings reports from leading companies. Tesla will report after the closing bell on Tuesday, with Wall Street analysts are eyeing potentially more pain for the automaker amid the stock’s 43% drop already in 2024.
“In the face of a turning point in the investment thesis and an ocean of uncertainty, this call from Tesla is particularly anticipated,” Barclays analysts wrote. “Expect a negative catalyst.”
The market narrative has been pessimistic, with the major averages all losing ground last week amid a weakening macroeconomic outlook. Market prospects for rate cuts in 2024 have dimmed amid stubbornly high inflation and hawkish rhetoric from the Fed that has recalibrated its monetary policy forecasts.
A large number of Fed officials made comments last week, in a decidedly less dovish tone than their recent remarks, and most indicated that the central bank was in a hurry to cut interest rates. The lack of movement from the Fed makes this earnings season particularly important, as traders struggle to salvage a strong first-quarter recovery that fizzled in April.
However, a brand new inflation number could be another source of anxiety on Friday, when markets receive the latest data on personal consumption spending, which is the Fed’s preferred inflation indicator.
“Friday’s PCE inflation numbers will be very important in this regard, with markets bracing for a slight rise in the headline figure and a slight decline in the core figure,” wrote Matthew Ryan, head of market strategy at financial services company Ebury, in a note on Monday.
Here is where the US indices stood at the 4 p.m. close on Monday:
Here’s what else is happening:
In commodities, bonds and cryptocurrencies:
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West Texas Intermediate Crude oil edged up 0.1% to $83.02 a barrel. Brent crudethe international benchmark, fell 0.3% to $87.05 a barrel.
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Gold rose and fell almost 3% to $2,343.70 an ounce.
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The 10-year Treasury yield rose slightly to 4.617%.
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Bitcoin rose slightly by 2.4% to $66,321.
Read the original article on Business Insider
