Stocks Rise as Big Tech Earnings and Fed Decision Loom
The U.S. stock market experienced mixed movements amid a week packed with major earnings reports and a Federal Reserve policy decision. The S&P 500 rose slightly, led by gains in Apple and Meta Platforms ahead of their earnings releases. Apple’s stock was upgraded by JPMorgan with a target of $315, implying a 27% upside, driven by strong iPhone demand and lower operating expenses. Meanwhile, Nvidia announced a $2 billion investment in CoreWeave, boosting AI data center expansion. Gold prices surged past $5,100 per ounce, reaching a new all-time high amid geopolitical tensions and concerns over the dollar’s strength, which also declined to a four-month low. The dollar’s weakness was partly attributed to speculation of possible intervention with Japan to stabilize the yen. Investors are cautious ahead of the Fed’s rate decision, expected to hold rates steady but with close attention to future rate cut signals. Major tech companies, including Microsoft, Meta, and Tesla, are scheduled to report earnings this week, with focus on AI and cloud spending. The market also reacted to geopolitical developments, such as Trump’s threat of tariffs on Canada and trade tensions involving China. Additionally, the Department of Commerce announced a $1.3 billion loan and equity stake in USA Rare Earth, which saw its stock soar over 20%. In other markets, Canada’s TSX hit a record high driven by soaring precious metals, despite trade uncertainties. Overall, markets are navigating political risks, inflation concerns, and earnings expectations in a volatile but cautiously optimistic environment.
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