Stocks surged on Monday as traders lifted Federal Reserve rate cut expectations, with the Dow Jones Industrial Average climbing 176.59 points to close at 38,852.27. The S&P 500 and Nasdaq Composite also saw gains, ending at 5,180.74 and 16,349.25, respectively.
The positive momentum was fueled by an announcement from Hamas accepting an Egyptian-Qatari cease-fire proposal to end the war with Israel, giving a boost to stocks in early afternoon trading. Additionally, Friday’s nonfarm payrolls data showing fewer-than-expected job additions in April helped ease concerns of an overheating economy.
CFRA chief investment strategist Sam Stovall noted that the market is signaling the end of a pullback and a return to an upward trajectory, especially after Fed Chair Jerome Powell ruled out a rate hike as the central bank’s next move. This statement provided relief to investors and contributed to Monday’s gains.
Investors are keeping an eye on key companies reporting earnings this week, including Disney and Uber. Berkshire Hathaway, led by Warren Buffett, reported a significant increase in operating earnings for the first quarter, further boosting market confidence.
Micron, American Airlines, and Super Micro Computer were among the top-performing stocks on the S&P 500, with Micron gaining 4.7% after an upgrade from Baird. Overall, Wall Street is optimistic about the market’s direction following recent developments and earnings reports.
