U.S. stocks on Monday pushed higher as investors geared up for an earnings-heavy week that will see many major names report their quarterly results.
By mid-day, the tech-heavy Nasdaq Composite (COMP.IND) was up 2.05% to 11,368.53 points. The benchmark S&P 500 (SP500) was 1.37% higher to 4,026.94 points, while the blue-chip Dow (DJI) added 0.92% to 33,683.85 points.
All 11 S&P sectors were trading in the green, with heavyweight sectors Technology and Communication Services leading the gains.
All three indices extended their gains from a solid rally on Friday. Market participants are on watch for a host of earnings releases this week from companies such as Johnson & Johnson (JNJ), Microsoft (MSFT), Boeing (BA), IBM (IBM), Tesla (TSLA), Visa (V) and Chevron (CVX). Meanwhile, the Federal Reserve will take a backseat this week as the monetary policy committee enters its blackout period ahead of its February meeting.
“We look for the Committee to hike rates by 25 bps on February 1, bringing the target range for the federal funds rate to 4.50%-4.75%,” Wells Fargo economist Jay Bryson and team wrote. “Fed policymakers appear to be entering the fine-tuning phase of this tightening cycle.”
“However, inflation remains too high for the Fed’s liking, and most FOMC members continue to state publicly that rates need to go higher to bring inflation back to the target of 2%. We look for the Committee to raise its target range for the federal funds rate by 25 bps at each of its meetings on February 1, March 22, and May 3. If realized, the target range would end the tightening cycle at 5.00%-5.25% in early May.”