The Dow Jones industrial average rose on Monday as a busy week began, with midterm congressional elections and key inflation data due in the next few days.
The Dow traded 210 points, or 0.7% higher, while the S&P 500 gained 0.3%. The Nasdaq composite rose 0.1%.
Shares of Apple fell more than 1% after the tech company said iPhone production has been temporarily curtailed Due to Covid-19 restrictions in China. Meanwhile, Palantir shares fell more than 9% after the company posted disappointing quarterly results. Then Carvana fell 11% It had fallen more than 20% the previous day.
Facebook Parents Meta followed by a gain of more than 5% Wall Street Journal The statement said The company could begin layoffs as early as Wednesday. McDonald’s Traded at an all-time highUp to approximately 1%.
Tuesday’s midterm elections will determine which party controls Congress and will affect the direction of future spending. Democrats currently control the House and hold a majority in the Senate.
Investors may recognize the potential upside from midterm elections with a Republican or a Democratic president with a divided Congress, which historically represents above-average gains, RBC’s Lori Galvacina said in a Monday note.
“The market is hoping that some kind of Republican sweep of Congress will lead to some kind of gridlock in Washington, which they’re reading is good, or at least no new spending, which is good for prices and Treasury supplies,” Pratt said. Conger is Deputy CIO at Hirtle Callaghan & Co.
On the economic front, Thursday’s consumer price index report is expected by investors to provide more insight into how far the Federal Reserve will go to reduce inflation. A tepid report could signal to investors that a pivot from a long period of high interest rates may not be imminent.
“[In] For equity and bond markets to match the post-peak inflation performance charted, inflation will have to continue to decline — and at a faster pace than we’ve seen so far. Until the Fed signals that a ‘pivot’ is imminent, things will remain challenging,” Bird’s Rose Mayfield wrote in a recent note.
Elsewhere, several companies are expected to report, including on Monday Activision Blizzard, Lift And Take-Two Interactive. Corporate earnings season ends with most companies in the S&P 500 reporting results.
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