Stocks went up on Monday. The S&P 500, a big stock market indicator, finished the day better, and it’s no longer in a bad situation. Traders are getting ready for an important week with the Federal Reserve making a decision on interest rates, a jobs report, and Apple’s financial results.

The Dow Jones Industrial Average went up by 511.37 points, or 1.58%, to reach 32,928.96. This was the best day for this index since June 2.

The S&P 500 went up by 1.2% to reach 4,166.82, which was its best performance since the end of August. The Nasdaq Composite, another stock indicator, went up by 1.16% to reach 12,789.48.

Among different types of companies in the S&P 500, communication services did the best, going up by more than 2%, having its best day since late August. Large tech companies like Amazon and Meta Platforms also did well, with Amazon going up by 3.9% and Meta Platforms by 2%.

These improvements came after the S&P 500 had a tough time last week. It fell by 2.5% during the week, putting it more than 10% below its highest point for 2023. It’s also down by 2.8% for the month of October, which would be its third consecutive month of loss since 2020 when the pandemic began.

Art Hogan, a market expert, said, “Last week, we closed on the lows. When you have that type of negativity heading into the weekend and nothing comes up that alters the markets’ and the economy’s outlook, you often get a little bit of a claw back on Monday.”

“Investors are at last getting a little bit more confident that maybe we priced in sufficient bad news, and that’s really showing in a stronger market today,” he said.

The Federal Reserve will make a decision on Wednesday, and it’s widely expected that they won’t change the interest rate. High interest rates have been causing problems in the stock market, so investors are hoping the Fed signals that they won’t raise rates for the rest of 2023.

“Although the United States Federal Reserve is holding a meeting, there is a growing consensus that they will not raise rates at this particular meeting, and that they will hold back-to-back meetings without doing so,” stated Hogan. That may be an indication that the rate-hiking cycle is ending, and it would probably assist to slow down the sharp rise in Treasury yields.

“”I think if we’re seeing rates leveling off for some time, that will definitely bring some good news,” Hogan stated.

The 10-year Treasury yield, which is related to interest rates, went above 5% at the start of the week but was around 4.89% on Monday. This Friday, we’ll get the jobs report for October, and investors are hoping to see some slowing in the job market, which would make the Fed more comfortable with keeping rates the same.

Apple will release its earnings report on Thursday after the market closes. This big company, which is a part of the S&P 500, is also in a difficult situation, with its stock price down by 14% from its highest point in the past year.

Conclusion

In conclusion, the stock market rallied as the S&P 500 moved out of correction territory. The positive momentum followed a challenging week, and it was driven by strong gains in key indices and notable tech companies. Investors are now eagerly awaiting the Federal Reserve’s interest rate decision, hoping for stability in interest rates. The market is also focused on Apple’s upcoming earnings report. Overall, this week presents a pivotal moment for market stability and investor confidence.