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US stocks closed higher on Monday, ending a six-day losing streak for the S&P 500.
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Traders are gearing up for earnings from high-profile firms, looking for a new catalyst to restart the first-quarter rally.
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Tesla will report earnings after the closing bell on Tuesday, followed by Meta on Wednesday.
Stocks rallied on Monday, with the S&P 500 rising nearly 1% to snap a six-day streak of losses.
Investors are turning their attention to earnings reports due up from high-profile companies. Tesla will report Tuesday after the closing bell, with Wall Street analysts eyeing potentially more pain for the car company amid the stock’s 43% decline already in 2024.
“Facing an investment thesis pivot and a sea of uncertainty, this Tesla call is extra highly anticipated,” Barclays analysts wrote. “Expect negative catalyst.”
The narrative in the market has been downbeat, with major averages all losing ground last week amid a weakening macro outlook. The market’s view of rate cuts in 2024 has dimmed amid stubbornly high inflation and hawkish Fedspeak that has recalibrated forecasts for monetary policy.
A slew of Fed officials delivered comments last week, with the tone decidedly less dovish than recent remarks, and most indicated that the central bank was in a rush to cut interest rates. The lack of movement from the Fed makes this earnings season particularly important as traders struggle to rescue a strong first-quarter rally that has fizzled in April.
However, a brand new inflation reading could be another source of anxiety on Friday, when markets will get the latest personal consumption expenditures data, which is the Fed’ preferred inflation gauge.
“Friday’s PCE inflation figures will be highly important in this regard, with markets bracing for a modest uptick in the headline and a mild drop in the core number,” Matthew Ryan, head of market strategy at financial services firm Ebury wrote in a note on Monday.
Here’s where US indexes stood at the 4 p.m. closing bell on Monday:
Here’s what else is going on:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil edged higher by 0.1% to $83.02 a barrel. Brent crude, the international benchmark, dipped 0.3% to $87.05 a barrel.
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Gold climbed tumbled nearly 3% $2,343.70 an ounce.
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The 10-year Treasury yield edged up to 4.617%.
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Bitcoin edged higher by 2.4% to $66,321.
Read the original article on Business Insider