Stock market hits fresh record high as tech earnings and Fed decision loom
Market Overview
The S&P 500 rose on Monday, reaching a new record high as Wall Street focused on upcoming mega-cap tech earnings reports and the Federal Reserve’s rate policy decision. The benchmark index climbed 0.2%, surpassing its previous all-time high close of 4,894.16 achieved on January 25. The Dow Jones Industrial Average also advanced 0.1%, adding 42 points, while the Nasdaq Composite gained 0.5%.
Major Tech Earnings
This week marks the busiest period of the earnings season, with 19% of the S&P 500 expected to report their earnings. Several mega-cap tech companies, including Microsoft, Apple, Meta, Amazon, and Alphabet, are included in this group. These tech giants, which have been driving this year’s market rally, will be closely watched as investors analyze their financial results.
Dow Components Reporting Earnings
Investors are also keeping an eye on several Dow components reporting their quarterly earnings. Boeing and Merck are among the companies in the Dow index expected to release their financial results.
Federal Reserve’s Rate Policy Decision
The Federal Open Market Committee (FOMC) is set to begin its two-day policy meeting on Tuesday. Market participants seem certain that the central bank will maintain its current interest rate levels. According to CME Group’s fed funds futures market, there is nearly a 97% probability that the Fed will not cut rates during this meeting.
Market Outlook
Chris Larkin, head of trading and investing at E-Trade, emphasized the significance of this week for the market. He believes that in order for the market to sustain its current positive trend, it will need to avoid earnings disappointments from the major tech companies, receive positive news from the Fed regarding interest rates, and observe solid but not excessively high job numbers. The market will closely scrutinize these factors to determine its future direction.
iRobot Shares Plummet
iRobot, the vacuum maker, experienced a drop of more than 9% in its share price. This decline followed the news that Amazon would no longer pursue a deal to acquire the company.
Disclaimer: This article is for informational purposes only and should not be regarded as investment advice. The opinions and speculations expressed are solely those of the author(s) and do not necessarily reflect the official position of the news website.
