FX.co ★ US Stocks Start Week Higher

U.S. stocks experienced a notable rise on Monday, driven by expectations of forthcoming interest rate cuts by the Federal Reserve and potential favorable earnings reports scheduled for this week. Investors seemingly overlooked indicators of a decelerating labor market and increased tariffs. The S&P 500 and Dow Jones indices each gained nearly 1%, while robust performances in the technology sector propelled the Nasdaq 100 upwards by 1.3%. Last week witnessed a decline in equities following significant revisions to payroll employment figures, which dispelled the belief that the U.S. labor market was resilient amid economic uncertainties caused by tariffs and elevated government deficit spending. This, in turn, bolstered the argument for multiple rate cuts by the Fed this year. Rate futures indicated a surge in positions anticipating a rate cut at the upcoming meeting, coinciding with President Trump's imminent announcement of the new Fed Chairman, who is anticipated to favor reduced rates next year. Ahead of its earnings release post-market, Palantir saw a 4% increase, while Apple, Amazon, and Nvidia each rose by over 1%. Conversely, Berkshire Hathaway experienced a 3% decline following the release of its earnings over the weekend.