This Monday, we have already seen a stock market rally, with a reasonable recovery after last week. Investors are likely looking forward to several events coming up over the coming period. This includes Fed decisions on interest rates, US job reports, and earnings from top tech firms like Apple.
The S&P 500 rose up by 1.20%, a pretty notable rally, its best since August, with the Dow Jones index performing even better, rising by 1.58%. The Tech-heavy Nasdaq actually rose the least of the three indices, jumping up by 1.16%.
Within the S&P 500, the best sector had to do with communications, which rose by 2.00% overall. If we look even more closely, we see that Amazon rose by 3.90% while Meta jumped up by 2.00%.
This is a welcome shift for investors, as last week saw the S&P 500 in a corrective mood. It fell by 2.50% and was overall 10.00% lower than its highest point this year. There have been losses for 3 months straight for the index. The pandemic was the last time we saw a performance this bad. This Monday has, therefore, given investors some hope for a market recovery and regaining some of their losses from some of the more volatile stocks.
Fed’s Upcoming Decision and its Impact on Volatile Stocks
The Fed’s decision is coming this Wednesday, and most analysts believe the bank will announce no change in rates for now. This is just as well for the stock markets, as their performance has been closely following recent rate hikes. So, a pause in hikes would signal a positive future for the markets.
Meanwhile, Treasury yields have subdued somewhat since last week, when they had reached over 5.00%. Now, they are around 4.89% as of Monday, which could calm things down for stocks and could help in another stock market rally. Finally, many are anticipating data from Apple, as it has lost 14.00% of its stock value from its highest point this year. It has certainly not been among the best stocks to invest in 2023. The future moves of this firm will be vital to know when it comes to investing.
