Stocks on Wall Street opened higher today, setting a positive tone for the week ahead of several key central bank meetings. The S&P 500 rose 1% in early trading Monday, rebounding from its recent back-to-back weekly losses. The Dow Jones Industrial Average gained 133 points, or 0.3%, while the Nasdaq composite surged 1.5%. Treasury yields remained stable. The Federal Reserve is set to announce its latest decision on interest rates this Wednesday, with central banks in Japan and England also meeting this week.
Wall Street continued to trend higher early Monday as investors awaited the Federal Reserve’s policy decision.
Before the bell, futures for the S&P 500 were up 0.7%, while futures for the Dow Jones Industrial Average rose 0.2%. Nasdaq futures jumped more than 1% following news of a connectivity issue that caused some orders to be canceled, which was later resolved.
Alphabet, Google’s parent company, saw a 5.5% increase before the bell on reports of potential licensing talks with Apple for its Gemini generative AI programs.
Despite some recent reports showing a slight cooling in inflation, it remains a key concern for investors. The Federal Reserve raised interest rates in 2022 to combat inflation, which reached as high as 9.1% in 2022. Recent data showed consumer prices ticking up to 3.2% in February, while wholesale prices also remained higher than expected.
The stock market rally that began in October has stalled this month as investors assess the impact of inflation on the economy. Fed officials will provide their latest interest rate forecasts on Wednesday, with traders expecting a rate cut in June.
In European markets, Germany’s DAX and the FTSE 100 in London both rose 0.2%, while France’s CAC 40 added 0.3%. In Asia, the Nikkei 225 in Tokyo surged 2.7%, awaiting the Bank of Japan’s decision on its benchmark interest rate. China’s Shanghai Composite gained 1%, boosted by reports of new policies to support the EV sector.
In other trading, U.S. crude oil rose to $81.49 per barrel, while Brent crude reached $85.73 per barrel. The U.S. dollar remained stable against the Japanese yen and euro.
Despite recent market volatility, Wall Street remains optimistic about the outlook for the economy and inflation, with hopes for continued growth in the long term.
Featured Image: Freepik @ wirestock
