From Nasdaq: 2024-05-03 12:46:40

US stock indexes showed moderate gains today, with the S&P 500 and Nasdaq 100 hitting multi-week highs. Optimism is rising on strong earnings from tech giants like Apple. However, hawkish comments from Fed Governor Bowman tempered gains, as concerns over inflation and weak economic data weighed on sentiment.

Corporate earnings have been mixed, with Apple and Amgen posting stronger-than-expected results, while Expedia Group and Fortinet disappointed the market. Overall, Q1 earnings are surpassing expectations, with 81% of S&P 500 companies beating estimates, providing support for stocks.

US Apr nonfarm payrolls came in below expectations, signaling a softer labor market, while the unemployment rate unexpectedly rose. The weaker data raised speculation of a rate cut by the Fed. The Apr ISM services index also fell more than anticipated, adding to concerns about the economy.

On the bond market, the 10-year T-note yield fell to a 3-week low as investors reacted to the disappointing economic data and inflation concerns. European government bond yields followed suit, lowering as well. The markets are now pricing in a small chance of a rate cut at the upcoming FOMC meetings.

In stock movements, Apple, Amgen, and Live Nation Entertainment posted strong gains on robust earnings reports. Homebuilders also rallied on lower bond yields. However, tech companies like Expedia Group and Fortinet saw declines after missing expectations. The mixed bag of earnings results is driving volatility in the market.

Looking ahead, investors will turn their attention to upcoming earnings reports from companies like Cboe Global Markets Inc, CBRE Group Inc, Equinix Inc, Hershey Co, and Trimble Inc. Market participants will closely watch economic indicators and Fed commentary for clues on future monetary policy decisions.



Read more at Nasdaq: Stocks Climb as US Jobs Report Ramps Up Fed Rate Cut Expectations