US stocks appeared to be rebounding on Monday from their worst week of the year as investors braced for a deluge of corporate earnings.
The S&P 500 (^GSPC) rose 0.5% after closing below the 5,000 level on Friday for the first time since February amid six straight days of losses. The Dow Jones Industrial Average (^DJI) rose 0.3%, while the Nasdaq Composite (^IXIC) rose 0.5%.
After the recent blow it suffered, the market's rise has fallen to its weakest point in months, and this week will be crucial to determine whether the malaise will continue.
Technology stocks are looking to rebound after lackluster earnings from Netflix (NFLX) dampened a broader market already grappling with geopolitical tensions. Fading opportunities for interest rate cuts have increased doubts that major companies can continue to carry out the gains.
Hopes now rest on big tech earnings later in the week to reassure and reignite the market. On deck are quarterly reports from Meta (META), Microsoft (MSFT), and Alphabet (GOOG).
Monday's focus is on Tesla (TSLA) as the electric car maker cuts prices in the US, China and several other countries. Tesla will announce its quarterly results on Tuesday after the market closes. The Elon Musk-led company has already spooked some investors with its push for robotaxis and its decision to have shareholders vote again on Musk's rejected pay package. Shares fell as much as 4% on Monday.
Meanwhile, debate continued over the Federal Reserve's stance on interest rate cuts after Chairman Jerome Powell and fellow policymakers became more hawkish last week in the face of persistent inflation. Given that, minds are already turning to Friday's release of the personal consumption expenditures index — the Fed's preferred measure of inflation — as crucial to assessing whether interest rates will stay higher for longer.
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