US stocks kicked off a pivotal week with mostly flat performances on Monday.
The Dow Jones Industrial Average dipped 0.1%, following a 650-point surge on Friday.
The S&P 500 gained nearly 0.1%, while the tech-heavy Nasdaq inched just above the flatline.
Investors began the week on a high note, buoyed by Friday’s encouraging inflation data that solidified hopes for future interest rate cuts.
However, the market’s recent volatility and substantial tech sell-offs have set the stage for a week filled with potential surprises.
The Federal Reserve is not expected to change interest rates at the conclusion of its meeting on Wednesday.
Despite positive signals from the US economy and inflation rates, many Wall Street analysts believe the central bank will wait until September to make any moves.
This week’s spotlight also shines on the July nonfarm payrolls report, due Friday. Anticipated to reveal weaknesses in the job market, the report will influence forecasts for the timing and scale of rate cuts in 2024.
In the earnings arena, all eyes are on Big Tech as Microsoft, Apple, Amazon, and Meta prepare to report. These updates come after significant stock drops for the “Magnificent Seven” during their last earnings season.
On Monday, Tesla shares jumped over 5% after Morgan Stanley’s Adam Jonas named the stock a ‘top pick.’
Meanwhile, McDonald’s shares rose despite the fast food giant missing earnings expectations, reflecting a pullback in consumer spending.
As markets navigate this crucial week, investors remain vigilant, ready to adapt to the unfolding economic and business landscape.
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