US Stocks Rise Ahead of Big Tech Profit Reports

U.S stocks rose on Monday, driven by investor optimism ahead of Big Tech earnings reports.
The S&P 500 rose by 0.5 percent, following its first weekly decline in nearly two months, while the Dow Jones Industrial Average gained 285 points (0.7 percent) and the Nasdaq approached its recent all-time highs with a 0.6 percent bump.
Investors are looking to tech giants—Google parent Alphabet, Meta, Microsoft, Apple and Amazon—for results that could justify the stock surges these firms have seen in recent months.
Dubbed the “Magnificent Seven,” these major players wield enormous influence, often steering broader market movements single handedly shift the S&P 500. Five of the “Magnificent Seven” are on this week’s schedule to report their latest profits and are under pressure this week to deliver big enough growth to justify the recoveries for many of their share prices.
Tesla, another tech giant in this select group, saw its stock rally last week after surpassing analysts’ profit expectations.
Monday’s gains for Big Tech also helped offset drops for stocks in the oil-and-gas industry, which were hurt by the plunging price of oil. Exxon Mobil’s 1.4 percent drop and ConocoPhillips’ drop of 1.7 percent were two of the heaviest weights on the S&P 500.
Meanwhile, oil prices took a steep fall, dropping nearly 6 percent for both U.S. crude and Brent crude, after Israel attacked Iranian military targets on Saturday in retaliation for an earlier barrage of ballistic missiles.
As geopolitical uncertainties often affect energy markets, oil prices had spiked earlier in the month, only to settle lower as Israel’s limited retaliatory strikes eased worst-case fears among investors.
Concerns remain, however, over potential supply disruptions if conflict were to escalate further in the region.
Such concerns had sent the price of Brent crude up to nearly $81 per barrel in early October, despite signals that plenty of oil is available for the global economy. It’s since fallen back toward $71.
Bond markets also kept a steady pace, with the 10-year Treasury yield holding at 4.24 percent. But it’s still well above the roughly 3.60 percent level near the start of October. The Fed’s recent messaging on rates suggests it’s balancing efforts to control inflation with sustaining economic growth, a stance that has reassured some investors who had braced for a more aggressive rate-cut outlook.
With the U.S. presidential election quickly approaching, market volatility remains high, as investors navigate an unpredictable economic landscape amid political shifts.
In stock markets abroad, Japan’s Nikkei 225 rose 1.8 percent after the Japanese Prime Minister Shigeru Ishiba’ s ruling coalition lost a majority in the 465-seat lower house in a key parliamentary election Sunday.
Stock indexes were mixed in Asia and Europe.
This article includes reporting from The Associated Press.