Nasdaq Index, Dow Jones, S&P 500 News: Energy Stocks Surge Lifts Market Ahead of Fed Meeting

Key Points

• Major U.S. stock indexes show early gains, tech earnings awaited.
• Oil stocks climb as crude prices hit multi-month highs.
• Market anticipates Fed decision, Treasury yields see a decline.

U.S. Stocks Advance After Opening

The major U.S. stock indexes are up shortly after the cash market opening, reversing pre-market losses. This early upward trend reflects investor optimism as they await key tech earnings reports and the Federal Reserve’s upcoming policy decision.

At 15:05 GMT, the Dow Jones is trading 38130.43, up 21.00 or +0.06%. The S&P 500 Index is at 4892.96, up 1.99 or 0.04% and the Nasdaq-100 Index is trading 15461.66, up 6.30 or +0.04%.

Individual Stocks in Focus

Significant stock movements were noted among individual companies. iRobot’s shares fell sharply following the collapse of its merger deal with Amazon due to regulatory hurdles. In contrast, Dollar Tree and American Airlines saw their shares climb following upgrades from JPMorgan and Citi, respectively. Technology companies such as ZoomInfo Technologies also experienced positive shifts after receiving an analyst upgrade.

Energy Sector and Oil Companies

In the energy sector, oil stocks mirrored the surge in crude oil prices. Companies like Marathon Petroleum, Valero, Phillips 66, and Halliburton showed notable gains, riding the wave of increasing oil prices which have reached multi-month highs.

Federal Reserve and Treasury Yield Outlook

Attention is also on the U.S. Treasury yields, which have declined as markets anticipate the Federal Reserve’s rate decision. With the Fed’s policy meeting set to start, investors are expecting the central bank to maintain interest rates, with a keen eye on any guidance regarding future rate cuts. This scenario is shaping up to be a critical influencer of market sentiment in the short term.

Short-Term Market Forecast

The overall market mood is cautiously bullish, buoyed by positive movements in individual stocks and sectors, particularly in technology and energy. However, the direction of the market in the short term will hinge on the outcomes of the big tech earnings, the Federal Reserve’s policy decision, and key economic data releases in the coming days.

Technical Analysis

E-mini S&P 500 Index futures are edging higher on Monday, while hovering near its record high at 4934.25. Given its current position, the benchmark index is poised to resume its uptrend if the Fed policy statement and remarks from Fed Chair Jerome Powell on Wednesday don’t alter the central bank’s plan to trim interest rates later in the year.

A somewhat hawkish-Fed stance has likely been priced into the market, but an extremely hawkish Fed has not been. If the latter is revealed then look for the market to break toward its nearest support at 4808.25. Weaker-than-expected Big Tech earnings could produce a similar break.