Equity Markets Surge due to Rumors of Interest Rate Decrease by the Federal Reserve
Market Roundup: Stocks Rally as Tech Giants Shine
Stock markets in the US rallied sharply on Monday, recovering from some of last Friday's steep losses. The S&P 500 Index ($SPX) closed up 1.47%, while the Nasdaq 100 Index ($IUXX) saw a more significant increase of 1.87%. The Dow Jones Industrials Index ($DOWI) also closed up by 1.34%.
In the tech sector, Meta Platforms (META) closed more than 3% higher, and Microsoft (MSFT) climbed by over 2%. Tech heavyweights like Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA) also saw gains, with Tesla closing up more than 2%.
The rally came amidst a mixed bag of earnings reports. Idexx Labs (IDXX) reported a strong Q2, with revenue of $1.11 billion, causing its shares to surge by over 27%. However, LyondellBasell Industries NV (LYB) saw a decline after reporting Q2 adjusted Ebitda of $715 million, causing its shares to fall more than 4%.
In the earnings reports yet to come, companies such as Advanced Micro Devices Inc (AMD), Aflac Inc (AFL), Amgen Inc (AMGN), and many more are set to announce their Q2 results.
Meanwhile, the Federal Reserve's rate cut prospects have increased, with the chances of a September rate cut at the FOMC meeting rising to 90% from 40%. This increase is due to recent dismal payroll and ISM manufacturing reports. The 10-year T-note yield fell 2.4 bp to 4.192% on Monday.
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Other notable events include Wayfair (W) reporting a Q2 adjusted EPS of 87 cents, causing its shares to rise by over 11%. Tyson Foods (TSN) reported Q3 sales of $13.88 billion. Spotify (SPOT) announced an increase in the monthly cost of premium subscriptions, causing its shares to climb more than 5%.
Steelcase (SCS) made headlines after being acquired by HNI for $2.2 billion, causing its shares to skyrocket by over 60%. Broadcom (AVGO) and KLA Corp (KLAC) also saw gains, closing up more than 3%.
In the broader economy, US June factory orders fell -4.8% m/m, the biggest decline in more than 5 years. However, factory orders ex-transportation rose +0.4% m/m, the largest increase in 7 months.
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Note: This article is generated from bullet points and may not cover all events in detail. Always do your own research before making investment decisions.
Technology giants, including Meta Platforms (META), Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA), contributed significantly to the stock market rally on Monday. These tech companies experienced gains, with Tesla closing up more than 2%, as the S&P 500 Index ($SPX), Nasdaq 100 Index ($IUXX), and Dow Jones Industrials Index ($DOWI) also saw notable increases.
