US stocks rebounded on positive economic data and Fed comments, with gains seen across major indices.

From NASDAQ MarketSite: 2024-10-01 10:17:05

The S&P 500, Dow Jones, and Nasdaq all saw gains on Monday despite early losses. Strong US economic data helped support the markets, with the Chicago PMI and Dallas Fed manufacturing survey beating expectations. The Fed signaled it was not rushing to cut interest rates, affecting investor sentiment. Chinese stocks surged to a 16-month high due to stimulus measures.

US market participants are eagerly awaiting the monthly payroll report on Friday, with nonfarm payrolls expected to increase by 146,000. The chances of a rate cut at the November FOMC meeting are high, with a 100% possibility of a 25 bp cut and a 35% chance of a 50 bp cut. Overseas, major markets closed mixed, with China and Japan showing contrasting performances.

Interest rates rose on Monday as Fed Chair Powell and Fed Governor Bowman expressed patience in raising rates. T-note yields climbed to 3.800% following better-than-expected economic reports. European government bond yields were mixed, with the German 10-year yield falling and the UK gilt yield rising. ECB President Lagarde hinted at optimism regarding inflation, with a rate cut by the ECB in October expected.

Stock movers on Monday included Apple, CVS Health, and Generac Holdings, which all closed higher. FedEx and UPS gained after an analyst report suggested they would benefit from a potential port workers strike. Brown-Forman was lifted by an upgrade from Barclays. Chip stocks, on the other hand, struggled due to higher T-note yields. Stellantis NV faced a 12% drop after cutting its full-year guidance. Automotive giants General Motors and Ford Motor also faced losses.

Earnings reports on Tuesday include Acuity Brands, Lamb Weston Holdings, McCormick & Company, NIKE, and Paychex. The market is eagerly watching these reports for insights into various sectors and companies. Please note that the views expressed in this article are solely informational and may not reflect those of Nasdaq, Inc.



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