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April 22, 2024 β 7:04 AM PDT
(Reuters) β Wall Streetβs main indexes rose on Monday after steep losses in the previous session as easing Middle East tensions buoyed risk appetite, while investors looked ahead to an action-packed week with major tech earnings and a key inflation print.
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The NasdaqΒ (.IXIC)Β and the S&P 500Β (.SPX)Β ended lower on Friday as NetflixΒ (NFLX.O) shares weighed after a dour quarterly earnings report, with both the indexes suffering six straight sessions of declines last week, their longest since October 2022.
Some megacap growth stocks edged higher in early trading, with Meta PlatformsΒ (META.O), Amazon.comΒ (AMZN.O)Β and AppleΒ (AAPL.O)Β up between 0.6% and 1.5%.
NvidiaΒ (NVDA.O)Β advanced 2.8%, rebounding from a 10% drop in the last session.
βThe market got over-sold on Friday because of Netflix earnings, it was primarily a tech-driven decline,β said Jay Hatfield, CEO and portfolio manager at InfraCap.
βWeβre headed into megacap earnings and so people are starting to realize that Netflix is not very indicative of whatβs going to happen with other megacap stocks.β
TeslaΒ (TSLA.O), Meta Platforms, Alphabet and MicrosoftΒ (MSFT.O)Β will be in focus this week as the companies gear up to deliver their quarterly numbers, whoseΒ performanceΒ could further test the rally in U.S. stocks.
The risk-on mode was also supported by signs of easing tensions in the Middle East, as Iranβs foreign minister said on Friday Tehran wasΒ investigatingΒ an overnight attack, adding that so far a link to Israel had not been proven as he downplayed the strike.
Equities have sold-off recently as market participants readjust their interest rate cut expectations from the U.S. Federal Reserve after a string of strong economic data signaling persistent inflationary pressures.
Money markets are now pricing in just about 38 basis points (bps) of rate cuts this year, down from about 150 bps seen at the beginning of the year, according to LSEG data.
On the docket this week would be the price consumption expenditure (PCE) index reading for March β the Fedβs preferred inflation gauge β to further ascertain the monetary policy trajectory.
Fed policymakers were in a media blackout ahead of their latest policy meeting on May 1.
At 9:40 a.m. ET, the Dow Jones Industrial AverageΒ (.DJI)Β was up 44.85 points, or 0.12%, at 38,031.25, the S&P 500Β (.SPX)Β was up 18.13 points, or 0.36%, at 4,985.36, and the Nasdaq CompositeΒ (.IXIC)Β was up 109.81 points, or 0.72%, at 15,391.82.
Six of the 11 major S&P 500 sectors were trading higher, with communication servicesΒ (.SPLRCL)Β leading gains, up 0.9%.
Among single stocks,Β TeslaΒ fell 3.7% as the electric vehicle maker cut prices in a number of its major markets, including China and Germany, following price reductions in the United States.
SalesforceΒ (CRM.N)Β rose 2.3% after the business software maker backed away from its talks to acquire data-management software firm InformaticaΒ (INFA.N)Β after the two companies could not agree on terms.
Advancing issues outnumbered decliners by a 1.23-to-1 ratio on the NYSE and by a 1.17-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and two new lows, while the Nasdaq recorded 13 new highs and 55 new lows.
Reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel