“We went very quickly from a situation where investors didn’t seem to pay much attention to what the Fed was saying” to “really spasmodic and sporadic investor reactions” to Fed announcements, said US Bank Wealth Management investor Bill Merz. Copyright AFP/File YOSHIKAZU TSUNO
US stocks closed higher on Monday on a technical rebound and trade-seeking after last week’s nightmarish gains.
The Dow Jones Industrial Average added 0.64%, the Nasdaq Tech Index rose 0.76% and the S&P 500 rose 0.69%.
All three indexes opened in the red on Monday morning, after which they fluctuated back and forth for most of the day and finally gained points before closing.
“I think today it was really about finding great deals,” said RegentAtlantic analyst Andy Kapyrin.
Major Nasdaq stocks such as Apple (+2.5%), Meta (+1.18%) and Nvidia (+1.39%) closed higher after several days of struggle.
After Friday’s run, FedEx (+1.17%) was also in demand on Monday, as was Gap (+4.39%), which suffered a downturn last week after a deal with designer and rapper Kanye ended. West.
Briefing.com reported that markets also benefited from a technical recovery as the S&P 500 reversed direction after hitting a low on Friday.
Investors have their eyes on Washington as the Federal Reserve meets on Tuesday and is expected to announce a 75 basis point rate hike on Wednesday.
“The market is so oversold, so bearish, so few people are bullish on stocks, that there is very little room for negative surprises,” Kapyrin said of Wednesday’s announcement, predicting investors were unlikely to react negatively to the rate hike. .
Monday also saw a further rise in bond rates, in line with the Fed’s recent moves.
US 10-year Treasuries hit 3.5% for the first time in 11 years.
And two-year rates rose to 3.96% for the first time in almost 15 years.
“We went very quickly from a situation where investors didn’t seem to pay much attention to what the Fed was saying” to “really spasmodic and sporadic investor reactions” to Fed announcements, said US Bank Wealth Management investor Bill Merz.
Merz said the market is likely to be more sensitive to the Fed’s economic outlook on Wednesday than to any rate changes.