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US stocks jumped on Monday as investors kept hopes of Fed interest rate cuts alive.
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The renewed hopes for interest rate cuts came following the lighter-than-expected April jobs report.
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The futures market is now pricing in two interest rate cuts by the end of the year.
US stocks edged higher on Monday, extending its gains from Friday as investor hope around potential interest rate cuts continues to build.
The jolt of hope for interest rate cuts came following the Friday release of the April jobs report, which was weaker-than-expected based on economists forecasts. The US economy added 175,000 jobs last month, compared to estimates for nearly 250,000 jobs.
The futures market now prices in two 25-basis point interest rate cuts from the Federal Reserve by the end of the year, which is an increase from the recent pricing of just one interest rate cut a week ago.
Investors will look for further clues about interest rate cuts from several Federal Reserve members this week, with nine scheduled to speak between throughout the week.
Investors are continuing to monitor first-quarter earnings results, which have mostly surpassed analyst expectations.
Of the 80% of S&P 500 companies that have so far reported results, 81% are beating profit estimates by a median of 7%. Meanwhile, 61% of companies have beaten revenue estimates by a median of 4%, according to data from Fundstrat.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil jumped 0.61% to $78.59 a barrel. Brent crude, the international benchmark, rose 0.55% to $83.42 a barrel.
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Gold edged higher by 1.05% to $2,332.80 per ounce.
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The 10-year Treasury yield fell 1 basis points to 4.50%.
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Bitcoin edged lower by 0.68% to $63,605.
Read the original article on Business Insider