Stocks are on the rise on Wall Street as they attempt to recover from the losses incurred during the worst week since April. The S&P 500 was up 0.7% in early trading on Monday, with the Dow Jones Industrial Average up 0.3% and the Nasdaq composite up 1.1%. Big Tech stocks, including Nvidia, are bouncing back after facing criticism for being overvalued.
The positive momentum comes after President Joe Biden announced that he will not seek re-election, adding a new layer of uncertainty to the political landscape. Despite this news, financial markets remained relatively stable, with U.S. yields and the dollar showing resilience.
Investors will be closely monitoring corporate earnings reports this week, with companies like Coca-Cola, General Motors, Alphabet, Tesla, Ford, and Southwest and American Airlines set to release their latest financial results. Economic data on housing, inflation, and the overall economy will also be key factors influencing market movements.
Over the weekend, a massive technology outage caused disruptions worldwide, leading to flight cancellations and delays at airports. The issue, caused by a faulty software update, has since been resolved, with most airlines back to normal operations. Cybersecurity firm CrowdStrike confirmed that the outage was not a security incident or cyberattack.
In European markets, Germany’s DAX and France’s CAC 40 were both up 1.4%, while the FTSE 100 in London added 0.8%. In Asia, Japan’s Nikkei 225 slipped 1.2%, while the Hang Seng in Hong Kong gained 1.3% and the Shanghai Composite dropped 0.6% following China’s unexpected rate cut to boost economic growth.
Overall, the markets are showing signs of recovery and resilience in the face of political and economic uncertainties, with investors keeping a close eye on upcoming developments.
