US Stocks Start Week Higher
US stocks were firmly higher on Monday amid bets of incoming rate cuts by the Federal Reserve and potential earnings beats this week, as markets looked past signs of a slowing labor market and higher tariffs.
The S&P 500 and the Dow Jones were nearly 1% up, while strong tech performances lifted the Nasdaq 100 by 1.3%. Equities slumped last week after aggressive revisions to payroll employment erased the view that the US labor market was resilient to economic uncertainty from tariffs and higher deficit spending by the US government, strengthening the case for multiple rate cuts by the Fed this year.
Rate futures showed a rally in positions pricing a rate cut next meeting, while President Trump was due to announce the new Fed Chairman, likely in favor lower rates next year, in the coming days. Palantir jumped by 4% ahead of its earnings after the bell, while Apple, Amazon, and Nvidia jumped over 1%. In turn, Berkshire Hathaway lost 3% after its earnings release over the weekend.
Source: Trading Economics
