- US inflation data may provide insight into the trajectory of the Fed’s upcoming interest rate hikes.
- 69% of the S&P 500 companies that have released results thus far have surpassed profit projections.
- India announced that it aims to triple its annual defense exports to $5 billion by 2024/25.
US equities closed substantially higher on Monday as investors awaited inflation data that may provide insight into the trajectory of the Federal Reserve’s upcoming interest rate hikes. Meta Platforms also rose following news that the parent company, Facebook, was considering additional layoffs.
Meta increased by approximately 3% after the Financial Times reported on Sunday that the company was getting ready to announce additional job cuts to those made in November. In a trading session with low volume, tech-related heavyweights—including Meta—contributed more than any other company to the rise in the S&P 500.
Stifel increased its price target on Microsoft and claimed that the software maker is attempting to challenge Alphabet’s dominance of Google search through the integration with ChatGPT.
Investors are concentrating intensely on the January inflation figures anticipated on Tuesday to reevaluate their bets on the direction of the central bank’s monetary policy.
The major Wall Street indexes are recovering after posting the worst week in 2023 last week. The decline came after Federal Reserve Chair Jerome Powell warned that the central bank might need to raise interest rates more than anticipated to combat inflation.
As US quarterly earnings releases come to a close, data from Refinitiv shows that 69% of the S&P 500 companies that have released results thus far have surpassed profit projections.
On Monday, European equities increased as defense stocks surged on reports that India wants to triple its defense exports. The pan-European STOXX 600 ended 0.9% higher thanks to increases across the board, with shares of Swedish defense equipment company SAAB rising to the index’s top spot with a 7.4% gain.
India announced that it aims to increase domestic manufacturing while more than tripling its annual defense exports to $5 billion by 2024/25.
After three weeks of gains, European shares fell on Friday as hawkish comments from many Fed and European Central Bank (ECB) officials dashed market optimism that the central banks would soon cease their aggressive cycle of rate hikes.
Nevertheless, the STOXX 600 has increased 8.7% so far in 2023 due to earnings that exceeded expectations and a more optimistic view of the eurozone economy.