© Reuters
Investing.com — U.S. stocks were edging higher as investors awaited a fresh batch of corporate earnings.
At 9:47 ET, the was up 8 points or less than 0.1%, while the was up 0.1% and the was up 0.3%.
The main indices on Wall Street enjoyed their best week of the year last week as weaker-than-expected for October added to renewed hopes that an era of unprecedented monetary tightening by the Federal Reserve may be coming to an end.
The blue chip Dow gained 5.1%, its best week since October 2022, while the broad-based S&P he tech-heavy Nasdaq 6.6%, their strongest weeks since November of last year.
Fed speakers out in force
This upcoming week is light on market-moving data, but there are a number of Fed speakers due to give their opinions on matters economic this week, including two appearances by Chair – the second of which on Thursday includes a Q&A session.
Investors are becoming more and more confident that inflation will continue to slow, especially in the wake of Friday’s jobs report, prompting the Fed to ease next year just to stop policy becoming more restrictive in real terms.
Fed fund futures imply around an 85% chance the Federal Reserve is done with its hiking cycle, and an 80% chance it will start cutting in June.
Earnings season coming to an end
The earnings season is starting to wind down, with 80% of the S&P 500 companies having already reported their quarterly financial results.
However, there are still a number of key companies that will provide updates this week, including Walt Disney (NYSE:), Wynn Resorts (NASDAQ:), Occidental Petroleum (NYSE:) and D.R. Horton (BVMF:).
Tesla (NASDAQ:) will also be in the spotlight after Reuters reported that the electric vehicle manufacturer is preparing to manufacture a new EV model at its Berlin plant with a targeted price of €25,000, considerably cheaper than the currently available options in Germany. (€1 = $1.0753) Tesla shares rose 1.1%.
Oil rebounds after producers reaffirm supply cuts
Oil prices rose Monday, rebounding after last week’s hefty losses, with traders encouraged by the prospect of tighter supplies, while keeping an eye on events in the Middle East.
Major suppliers Saudi Arabia and Russia confirmed over the weekend that they will maintain their ongoing supply reductions until the end of the year, heralding tighter oil markets.
Both benchmarks slumped about 6% last week as the geopolitical risk premium faded, with the Israel-Hamas war failing, so far, to escalate into a wider conflict in the Middle East.
(Peter Nurse and Oliver Gray contributed to this item.)
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