The Dow Jones Industrial Average climbed more than 250 points on Monday, leading gains among major US stock indexes. The tech-heavy Nasdaq Composite and the S&P 500 each rose nearly 0.3%. The moves came at the start of a week packed with earnings reports from five of the “Magnificent Seven” megacap tech companies: Alphabet, Amazon, Microsoft, Meta, and Apple.
Investors are looking for strong performance from these tech giants, but questions remain about whether their investments are translating into profits. In addition to earnings, investors are bracing for crucial economic data this week. The latest readings on the Federal Reserve’s preferred inflation gauge and the October jobs report will be key in determining whether the Fed will cut interest rates at their November meeting.
Oil futures saw their biggest one-day drop in more than two years, with Brent crude falling to $71.42 per barrel and West Texas Intermediate settling just above $67. The decline was eased by relief that Israel’s retaliatory strikes on Iran targeted military facilities rather than oil or nuclear infrastructures. Ford shares declined 4% in after-hours trading after the automaker adjusted its full-year guidance.
The company now expects an adjusted EBIT of $10 billion, down from its prior range of $10 to $12 billion and lower than analysts’ expectations.
Big Tech earnings reports this week
Other notable companies set to report earnings this week include McDonald’s and AMD.
McDonald’s is expected to report an increase in revenue despite concerns over an E. coli outbreak, while AMD’s report will focus on the health of the artificial intelligence market. Tesla short sellers faced substantial losses following a post-earnings stock rally, with the company’s stock jumping 22% last Thursday, its biggest single-day gain in a decade.
JPMorgan Chase CEO Jamie Dimon criticized US regulators during a public appearance, describing a series of regulatory proposals as an “onslaught” and declaring that the industry is ready to push back in court. Apple is releasing its first set of Apple Intelligence features for iPhone, iPad, and Mac, a significant move as the tech giant tries to reaccelerate iPhone sales with new software. Sam Altman-backed nuclear power company Oklo saw shares surge almost 30% on Monday to $24.44, reflecting growing investor interest in small modular nuclear reactors among Big Tech companies.
Utility stocks outperformed on Monday, with the S&P 500 Utilities Sector ETF up more than 1%, while energy stocks lagged as oil prices sank more than 5%. Bitcoin prices rose more than 1.5% on Monday morning, hovering above $68,000 per token, and crypto-related stocks such as Mara Holdings, MicroStrategy, and Riot Blockchain all rose more than 4%. Lastly, Trump Media & Technology Group stock rose as much as 20% as investors bet on a potential win for Donald Trump in the upcoming US elections.
