Stocks rallied Monday as investors dismissed a supply warning from Apple, anticipating a packed week with congressional midterm elections and key inflation data in the next few days.
The Dow Jones Industrial Average traded 423.78 points (1.31%) higher at 32,827.00. The S&P 500 was up 0.96% at 3,806.80. The Nasdaq Composite rose 0.85% to 10,564.52 after trading between gains and losses earlier in the session. All three major averages recorded two consecutive positive days.
Apple shares rose about 0.4% after falling more than 1% during the session after announcing a temporary drop in iPhone production due to Covid-19 restrictions in China. Meanwhile, Palantir’s share price fell nearly 11.5% after the company posted disappointing quarterly results. Carvana fell about 15.6%.
Facebook parent company Meta rose 6.5% after a Wall Street Journal report said the company could begin layoffs as early as Wednesday.
Upcoming Major Elections and Economic Reports
Tuesday’s midterm elections will determine which party will control Congress and influence the direction of future spending.
RBC’s Lori Calvasina said in a note Monday that investors could see potential disruptions stemming from the midterm elections because Democratic presidents have historically meant above-average profits in Republicans or split Congresses. There is
“The market is expecting Republicans to sweep Congress and get into a kind of stalemate in Washington, or at least no new spending,” Mr. Brad said. His Conger, Deputy CIO of Hirtle Callaghan & Co, said:
On the economic front, investors expect Thursday’s consumer price index report to give more insight into how far the Federal Reserve needs to go to keep inflation down. A featured report could let investors know that a turnaround from a long period of high interest rates may not be imminent.
“[In] Inflation must continue to fall for the stock and bond markets to match the post-peak inflation rates shown in the table. The situation could remain challenging until the Federal Reserve indicates a ‘pivot’ is coming,” Baird’s Ross Mayfield wrote in a recent note.
Elsewhere, several companies are due to report on Monday. activision blizzard, lift When take-two interactiveWith most companies in the S&P 500 reporting results, corporate earnings season is coming to an end.
