US Stocks Notch Moderate Gains to Start the Week!!!

Current Stock Market News

US stocks ended Monday with modest gains after fluctuating for the final stretch of the trading session as investors attempted to come to terms with Federal Reserve policy that could remain restrictive for longer than previously expected.

The S&P 500 and the Nasdaq 100 bounced back after a dismal week for Wall Street. The 10-year Treasury yield slid to hover around 3.92%. A dollar index retreated. 

Among individual stock movers, Union Pacific Corp. was the best performer within the S&P 500 on Monday after saying it would replace its CEO this year amid pressure from a prominent shareholder. Zoom Video Communications Inc. rose in late trading after giving an upbeat profit forecast for the current period.

Investors have recently been recalibrating their forecasts for where rates will end up, given signs that inflation hasn’t been moderating as the Fed expects. Traders are pricing US rates to peak at 5.4% this year, compared with about 5% just a month ago. Fed Governor Philip Jefferson firmly standing by the central bank’s 2% inflation goal on Monday kept investors on the edge.

The view we have is that there’s still some further room to run on that repricing. So either equities are at risk to come lower or rates are at risk to head higher.”

In the near-term, both scenarios could play out if the markets price in a more hawkish policy outlook for the Fed

The view we have is that there’s still some further room to run on that repricing. So either equities are at risk to come lower or rates are at risk to head higher.”

In the near-term, both scenarios could play out if the markets price in a more hawkish policy outlook for the Fed