The S&P 500 rose Monday as Wall Street tried to rebound from a pullback last week, with Middle East tensions easing. Traders also looked ahead to the release of major tech earnings.
The broad market index traded 0.4% higher, while the Nasdaq Composite advanced 0.9%. The Dow Jones Industrial Average climbed 39 points, or 0.1%. Both the S&P 500 and Nasdaq are riding six-day losing streaks and fell 3.1% and 5.5%, respectively, last week.
U.S. crude prices fell more than 1% after Iran said it will not escalate the conflict with Israel.
The moves higher come as ahead a potentially big week for earnings, with the focus on Magnificent Seven tech companies.
“There are probably two dynamics at work behind the better tone in global stock markets this morning, the decline in gold and oil prices, and the steadiness (rather than rise) in the USD,” said Thierry Wizman, global FX & rates Strategist at Macquarie. “For one, concern over a spreading regional war in the Middle-East has faded. The movement away from a wider conflagration, and back to a ‘shadow war is probably why US bond yields are higher today.”
Companies including Tesla, Meta Platforms, American Airlines, Microsoft and Alphabet all set to report in the week ahead. Tesla reports after the bell Tuesday, Facebook-parent Meta is on deck Wednesday, while Apple, Intel and Microsoft all report Thursday.
There is some potentially bigger news in the back part of this this week, with GDP due out on Thursday and a key inflation reading on Friday, when the Commerce Department reports personal consumption expenditures price index data for March. The PCE deflator is the Fed’s preferred inflation gauge.
The Fed meets again April 30-May 1, with officials now in the quiet period ahead of the meeting.
