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Stocks closed after a shaky start on Monday, extending their gains from last week. That’s as investors braced for tough earnings from big tech companies. The S&P 500 is up 1.2% on him, with technology, healthcare and finance being a big part of the gains. Only materials and real estate stocks fell.
The Dow Jones Industrial Average rose 1.3%, while the tech-rich Nasdaq Composite ended his 0.9% gain.
Google’s parent company, Facebook’s parent company Amazon and Apple, will all report their latest financial results this week. One of the most expensive stocks in the S&P 500 benchmark, this week’s rally could mean a big move for the broader market.
Non-tech giants, including Coca-Cola, General Motors and Caterpillar, also reported earnings this week.
The S&P 500 has him up 44.59 points to 3,797.34. The Dow Jones Industrial Average was 31,499.62, up 417.06 points. The Nasdaq rose 92.90 points to 10,952.61. Small business stocks also rose. The Russell 2000 Index rose 6.16 points (0.4%) to close at 1748.40.
“The market is generally stagnant and there are some data points that people are waiting for,” said Jack Janasiewicz, portfolio manager and principal portfolio strategist at Natixis Investment Managers Solutions.
Bond yields rose slightly. Yields on 10-year Treasury bonds dipped to 4.25% after briefly rising to 4.29%. It hit 4.22% late on Friday. Yields on two-year Treasuries, which tend to reflect investors’ expectations of a rate hike by the Federal Reserve, rose to 4.50% from 4.48%.
Trading has been volatile this month, but major indices are solidly higher at the start of the last week of October after some big market gains last week. The S&P 500 is up 5.9% so far this month and the Dow is up 9.7%. Nasdaq more modestly he is up 3.6%.
Shares rose on Friday after comments from the Federal Reserve Governor raised hopes among traders that the central bank might consider easing the pace of aggressive rate hikes to curb inflation. San Francisco Federal Reserve Bank Governor Mary Daly said she was thinking about the danger of raising interest rates too high and doing too much damage to the economy. The Fed probably isn’t ready to scale back rate hikes, but “I think it’s time to start talking about rate hikes. Now is the time to start planning for retirement.”
Investors are keeping a close eye on the latest corporate earnings to get a better sense of how inflation is affecting different parts of the economy. Prices for everything from clothing to food have remained at their highest level in 40 years. This has forced businesses to raise prices and cut costs, putting pressure on consumers.