In rising territory but far from the day’s highs, Wall Street’s indices ended Monday’s trading with geopolitical concerns clearly subdued as the debate on the international stage turned to US and European sanctions on Iran rather than a immediate war between Israel and Iran.
The S&P 500 and the tech-heavy Nasdaq ended a six-day losing streak today – their longest losing streak since October 2022 – although they eventually pared their gains. Same picture for the Dow Jones, with the industrial index adding 253 points, although at the highs of the day it found itself gaining more than 300 points.
The gains came as investors braced for a week full of quarterly results announcements as well as important macro announcements including an inflation measure.
In particular, investors are preparing for the results of technology giants such as Tesla, Meta Platforms, Alphabet and Microsoft that will announce their quarterly financial statements by the end of the week.
The measurement of the price index for personal consumption expenditures in March is also on the radar of investors. This is the Fed’s preferred gauge of inflation, and as such is expected to monopolize the attention of investors as they look for new evidence on the path of interest rates in the coming months. Meanwhile, Federal Reserve officials have entered a so-called silent period ahead of their May 1 meeting.
Initial optimism that the Fed would rush to cut interest rates this year – starting as early as March – has given way to a much more cautious view of far fewer cuts this year as inflation has proved more stubborn than expected. the investors, but also the bank officials themselves.
Indicators – Statistics
On the board, the Dow Jones industrial average rose 253.58 points, or 0.67%, to 38,239.98, while the broader S&P 500 gained 43.37 points, or 0.87%, to 5,010.60. The tech Nasdaq added 169.30 points, or 1.11%, to close at 15,451.31.
Of the 30 stocks that make up the Dow Jones industrial index, 25 closed with a positive sign and only five with a negative. Goldman Sachs Group was the biggest gainer, up $13.35, or 3.30%, to close at $417.35, followed by JPMorgan Chase, up 1.94% at $189.41, and Procter & Gamble with gains of 1.52% to $160.54.
Conversely, top losers were Verizon Communications (-4.67%), UnitedHealth Group (-1.98%) and Walt Disney (-0.55%)
In business developments, Tesla stock plunged 3.4% after the electric car company decided to announce price cuts, after the US, and in other major markets, such as China and Germany. The company’s stock completed seven consecutive sessions in the red.
In the meantime, the de-escalation of tension in the Middle East gives impetus to investment psychology as Iran and Israel seem to be moving away from a war that would have incalculable consequences for the wider region and the global economy.
Iran’s foreign ministry said last week that Tehran was investigating the attack, adding that so far no direct link to Israel had been proven.
Tehran chose again today to play down the impact and significance of the recent Israeli raid, saying on Monday that Israel has received “the necessary response at this stage”, as reported by Bloomberg.
