Shares surged this Monday after a week of severe pullbacks. Investors are talking about stock market news, on the heels of President Joe Biden’s decision to drop out of the November election, throwing his support behind the vice president, Kamala Harris.
The Latest Stock News: Wall Street Rebounds
Wall Street rebounded in the latest stock news as markets recalibrated to the new political realities.
The Dow Jones Industrial Average jumped 145.49 points, or 0.36%, to 40,433.02. The S&P 500 rose 47.57 points, or 0.86%, to 5,552.57.
Meanwhile, the Nasdaq Composite ran up 218.04 points, or 1.23%, to 17,944.98.
The Latest Stock News: Tech Giants Lead the Charge
The tech giants led the latest stock news. Alphabet, Microsoft, Apple, and Tesla were all up between 1% and 4.2%, pushing the Information Technology index to lead the sectoral winners.
Most of the major sector indexes went up, though Energy was flat. The bullishness of tech stocks is a bellwether for how the sector is holding up in the face of political and economic uncertainty.
Latest Forex News: Discover the Major Market Movers Today!
The Latest Stock News: Biden’s Exit and Market Reactions
When US President Joe Biden announced that he was suspending his run for the election, and endorsing Vice President Kamala Harris, the resulting optimism sent PredictIt’s pricing for a Donald Trump victory down 4 cents to 60 cents and Harris’s odds rising 12 cents to 39 cents.
Sellers had to scramble to re-hedge their positions, which were still subject to potential fiscal and inflationary pressures under a Republican administration.
The Latest Stock News: Sectoral Movements and Key Performers
Sectoral performance has been notable in recent stock news, with the Information Technology index standing out as it rose on the back of the continued rise of mega-cap shares.
The Energy sector was a laggard, with political shifts affecting different sectors unevenly.
Stocks with the best performance were Nvidia, up 2.8% after reports that it is developing a compliant version of its top AI chips for the Chinese market, and Verizon Communications down 5.4% after it missed second-quarter revenue expectations.
The Latest Stock News: Economic Indicators and Market Expectations
As well as the ongoing trade tensions, key economic data due this week, including the usually market-moving Personal Consumption Expenditures Price Index, which is the Federal Reserve’s preferred inflation gauge, will be analyzed for any indications of the path the central bank is likely to take for monetary policy.
As of now, traders have built in a 25-basis-point cut by September and expect two cuts by the end of the year.
This has been an important component of market sentiment, along with political developments.
The Latest Stock News: Global Market Reactions
And the latest stock news will not be limited to the US markets. On Monday, after Biden’s announcement, global shares steadied, with the MSCI All-World index, which had been particularly hard hit in the previous week, gaining 0.04%.
The dollar also held steady against a basket of currencies, and cryptocurrencies, which have often served as a measure of Trump’s political fortunes – as tech stocks did in 2020 – steadied after initially falling.
The most important reaction, however, came from the bond market, where USTs strengthened and yields on the benchmark 10-year note sank by 1.6 basis points to 4.221%.
The Latest Stock News: Corporate Earnings in Focus
This week also begins the most important stock news of the month, the unofficial start of corporate earnings season.
Tesla and Alphabet report this week, and it kicks off reporting season for the ‘Magnificent Seven’ megacap stocks that rule our stock market.
Earnings for the tech sector are expected to expand by 17% year-over-year, versus 11% for the broader S&P 500. Earnings news from these handful of stocks will go a long way toward determining whether the recent high-momentum rally is sustainable or not.
The Latest Stock News: Market Sentiments and Future Outlook
The tone remains broadly upbeat as markets digest the latest stock news, but with the suggestion that Biden’s exit from the White House would be a ‘recalibration’ of trades betting on a Republican victory and its likely fiscal policy.
Some market participants reckoned that a divided government in the next administration could be good for markets by preventing extremes of policy.
To conclude, current stock news shows that the markets are currently in a state of flux, as political developments, sectoral movements, and economic indicators are all impacting the market.
Thus, the challenge for investors is to be both informed and flexible as they try to manoeuvre their way through the chaos of the markets.
As the political and economic world continues to develop, the next few weeks will be a key period for the financial markets, so it is important to keep checking the latest stock news.
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