Stocks enjoyed broad-based gains Monday, boosted once again by select mega-cap tech names. Still, a sense of caution hung over the session as a Federal Reserve policy statement is due later this week.
Market participants entered the week with their eyes on the next Fed meeting, but there will be plenty of other economic news for them to contend with as well. In addition to the central bank's latest statement on interest rates, the economic calendar features key readings on home prices, consumer confidence and the all-important April jobs report to wrap up the week.
At the same time, the earnings calendar is heavy with some of the market's biggest and bluest of blue chip stocks. Dow Jones stocks Apple (AAPL) and Amazon.com (AMZN) will get the most attention, but McDonald's (MCD), 3M (MMM) and Coca-Cola (KO) are just a few of the other names that could set the tone for trading.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The main event for now, however, remains the Fed meeting, which will wrap up with a policy statement on Wednesday afternoon. Traders and investors entered the year expecting as many as seven quarter-point cuts to the short-term federal funds rate. But stubborn inflation and concerns about slower economic growth have greatly pushed back expectations for lower rates.
"Growth in the U.S. economy was slower than expected in the first quarter, and at the same time, prices paid for goods and services increased more than expected," wrote Anthony Saglimbene, chief market strategist at Ameriprise. "Market odds continue to point to just one or two rate cuts in 2024. However, we believe the stock market can come to grips with a reduced number of rate cuts for this year if fundamental conditions are sound and the Fed's next move is a rate cut."
As of April 29, interest rate traders assigned just a 27% probability to the Federal Open Market Committee (FOMC) enacting its first cut in July, down from 49% a month ago, according to CME Group's FedWatch Tool. Odds of a September cut stand at 44%, up from 30% a month ago.
In major single-stock news, Alphabet (GOOGL) lost 3.4% Monday – but then the Google parent rallied more than 10% during the final session of last week. A strong quarterly report that included the announcement of its first-ever dividend helped GOOGL top $2 trillion in market capitalization Friday, a level it held through today's session.
In other big-tech single-stock news, Meta Platforms (META) continued its slide from last week. Shares in the Facebook and Instagram parent pulled back after it provided light guidance for second-quarter revenue and spooked investors with its capital spending forecast.
At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.4% at 38,387, while the broader S&P 500 added 0.3% to 5,116. The tech-heavy Nasdaq Composite rose 0.4% to 15,983.
Apple and Tesla save the day
Apple stock is down nearly 10% for the year-to-date, making it something of a disappointment as a Magnificent 7 stock, but the world's second-largest publicly traded company helped drag the market higher Monday. AAPL gained 2.5% after the iPhone maker was upgraded to Outperform (the equivalent of Buy) by analysts at Bernstein.
Apple has been an outstanding long-term holding. Not only was it one of the 30 best stocks in the world for 30 years, but anyone who put $1,000 into Apple stock a couple of decades ago would be very pleased with their returns today.
However, the real star of Monday's session was beaten-down Tesla (TSLA). A week ago, TSLA was off more than 40% for the year-to-date, but shares in the electric vehicle maker have since reversed the trend.
Indeed, Tesla soared more than 15% Monday – adding more than $82 billion in market value – on news the company cleared key regulatory hurdles that were blocking its rollout of self-driving software in China, its second largest market.
Related content
- Analysts' Top S&P 500 Stocks to Buy Now
- Best Dividend Stocks for Dependable Dividend Growth
- 8 Best Commodity ETFs to Buy Now
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical Tension
The main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's Chrome
Alphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Lowe's Stock Is Falling After Earnings. Here's WhyLowe's stock is lower Tuesday as Wall Street weighs a beat-and-raise quarter against declining revenue. This is what you need to know.
-
Why Walmart Stock's a Buy After Its Beat-And-Raise QuarterWalmart is the best Dow Jones stock Tuesday after the retail giant's solid earnings report and outlook and Wall Street thinks it's just getting started. Here's what they're saying.
-
Winners and Losers of Fed Rate CutsNavigating interest-rate changes can seem daunting, but these areas of the fixed-income market could perform better (or worse) than others.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
-
How Preferred Stocks Can Boost Your Retirement PortfolioHigher yields, priority on dividend payments and the potential for capital appreciation are just three reasons to consider investing in preferred stocks.
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
