Market information is displayed on monitors as a trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2024.
Andrew Kelly | Reuters
U.S. stocks rose Monday, with Wall Street looking to build on the previous session’s strong gains, after new jobs data revived hopes of the Federal Reserve cutting interest rates.
The Dow Jones Industrial Average climbed 169 points, or 0.4%. The S&P 500 advanced 0.5%, and the Nasdaq Composite gained nearly 0.6%.
Micron shares gained more than 3% after Baird upgraded the stock to outperform from neutral and said it sees “meaningful opportunities ahead” for shares.
The Dow, S&P 500 and Nasdaq popped more than 1% each on Friday after fresh nonfarm payrolls data on Friday showed the U.S. economy added fewer-than-expected jobs in April and an increase in unemployment, easing fears of an overheating economy. Traders became enthusiastic that the Fed could start lowering rates sooner this year.
“It feels a little early to declare that the U.S. economy has made a soft landing since the Fed still is holding interest rates at restrictive levels. But the April jobs report helps clear a path to that destination,” said Comerica Bank chief economist Bill Adams.
Investors will get more clues on future Fed moves on Monday, with Richmond Fed President Tom Barkin and New York Fed President John Williams slated to speak.
More earnings
While the peak of the first-quarter earnings season has passed, investors are still watching key companies set to report this week, including Dow member Disney on Tuesday and Uber on Wednesday.
“Earnings beats have rebounded in Q1, helped by margins,” Barclays’ Emmanuel Cau wrote in a Friday note. “While misses got punished, overall earnings resilience has likely limited the downside for equities.”
On Saturday, Warren Buffett’s Berkshire Hathaway reported a nearly 40% surge in year-over-year operating earnings for the first quarter. Berkshire also held its annual shareholder meeting.