New York City, New York – Big tech companies like Apple Inc. have been driving a recent rebound in the stock market, drawing the attention of Wall Street traders eagerly anticipating Apple’s upcoming earnings report. Investors are also preparing for the release of the key jobs report on Friday, which is expected to shed light on the Federal Reserve’s future decisions on interest rates.
Equities saw a pause in a two-day downward trend, with chipmaker Nvidia Corp. leading gains and Apple’s stock rising by 1.5%. Analysts are speculating that Apple may announce a buyback, following similar moves by other tech giants like Alphabet Inc. and Meta Platforms Inc. Any news related to artificial intelligence features could generate further excitement for Apple’s stock, as it has experienced a decline of over 10% this year.
In anticipation of the monthly employment report, data has shown a significant jump in US labor costs, the highest in a year, while productivity gains have slowed. This data suggests risks of inflation remaining elevated, with economists forecasting a slower pace in nonfarm payrolls growth compared to recent months.
The Federal Reserve recently decided to leave the benchmark rate unchanged, citing persistent price pressures. Fed Chair Jerome Powell indicated that the Fed is unlikely to raise rates in the near future. However, the central bank is willing to maintain higher rates for a prolonged period if necessary.
The S&P 500 index remained steady, hovering near 5,040, while the Nasdaq 100 experienced nearly a 1% increase. Companies like Qualcomm Inc. saw a surge in their stock price following positive forecasts, while EBay Inc. faced a decline due to a disappointing outlook. Treasury 10-year yields dropped, and the dollar weakened in response.
Market analysts are bracing for potential volatility post the US jobs report release, as the options market indicates significant stock price swings ahead. Main events this week include updates on Eurozone and US unemployment rates, as well as the speech of Chicago Fed President Austan Goolsbee on Friday.
In other corporate news, several companies reported positive earnings, including Peloton Interactive Inc., MGM Resorts International, Carvana Co., DoorDash Inc., Moderna Inc., and Apollo Global Management Inc. These results reflect varying degrees of performance and highlight key trends in different sectors of the economy.
Overall, the stock market remains dynamic and responds to a multitude of economic indicators and corporate developments, shaping investors’ expectations and influencing trading strategies. Market participants will closely monitor upcoming reports and events for insights into future market movements and the broader economic landscape.