US stocks gained ground on Monday after briefly turning negative, setting the stage for a busy week ahead. The Dow Jones Industrial Average recovered from earlier losses to hover near the flatline, while the S&P 500 and Nasdaq Composite also saw gains.
Investors welcomed a promising inflation reading that solidified expectations for interest-rate cuts, leading to a surge in stocks on Friday. However, the market remains volatile, with a looming Federal Reserve rate decision, the July jobs report, and Big Tech earnings on the horizon.
While the Federal Reserve is not expected to make a move this week, many anticipate that the central bank will use the meeting to signal a potential rate cut in September. The upcoming jobs report will also play a crucial role in shaping expectations for future rate cuts.
Investors are keeping a close eye on earnings reports from tech giants like Apple, Microsoft, Amazon, and Meta, following a recent tech sell-off. Additionally, over 150 members of the S&P 500 are set to report quarterly results, with McDonald’s already missing estimates due to a pullback in consumer spending.
As the week unfolds, market participants will be closely monitoring developments that could impact the fragile rally in US stocks. Stay tuned for updates on the Federal Reserve decision, the jobs report, and the latest earnings reports from key companies.
