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Stocks rallied early Monday as oil prices declined, amid a pause in fighting between the U.S. and Iran over the weekend. Traders were also looking ahead to a demanding week of megacap earnings and a potentially surprising Federal Reserve meeting.
The Dow Jones Industrials popped 357.72 points to 52,304.97.
The S&P 500 index added 9.07 points to 7,421.05
The NASDAQ Composite gave back 16.56 points to 24,959.26.
The week ahead will have no shortage of challenges for the major averages. A succession of quarterly reports from Amazon, Apple, Meta Platforms and Microsoft will either soothe investor fears of rampant artificial intelligence spending, or add to them, after Alphabet’s disappointing results in the last week.
The results could directly affect semiconductor companies that are the chief beneficiaries of the AI spending spree.
The Fed will make its latest decision on interest rates on Wednesday. The consensus view is that the central bank will hike rates in September, but markets are pricing in the meaningful possibility that the Fed will lift its benchmark borrowing rate a quarter percentage point as soon as this week.
Prices for the 10-year Treasury hiked, lowering yields to 4.66%. Treasury prices and yields move in opposite directions.
Oil prices dipped $5.76 to $83.55 U.S. a barrel.
Gold prices tacked on $7.60 to $4,078.40 U.S. an ounce.
