Latest stock market jumps: Dow Jones and S&P 500 Reach Record Highs in Latest Jumps.
Latest stock market jumps: On Monday, the stock market saw a continuation of the upward trend, following the historic surge in the previous session that led to new record highs. The Dow Jones Industrial Average rose by 150 points, marking a 0.5% increase and setting a new record level. Similarly, the S&P 500 reached a fresh all-time high with a 0.2% gain, while the Nasdaq Composite advanced by 0.3%.
Notable stock movements included Macy’s, which climbed over 3% after rejecting a $5.8 billion proposal to take the company private. SolarEdge experienced a more than 6% jump after announcing a workforce reduction of 16%. However, Archer-Daniels-Midland faced a significant drop of over 19% following weak earnings guidance and the CFO's leave amid an investigation related to accounting practices. B Riley Financial slipped nearly 4% after reports of regulatory scrutiny into deals with a client connected to securities fraud.
These gains on Monday followed the S&P 500's breakthrough above its intraday and closing record highs set in January 2022. This achievement signaled the continuation of the bull run that started in October 2022 after a previous downturn earlier in the year.
Brian Price, the Head of Investment Management at Commonwealth Financial, described the current market sentiment as a "fear of missing out," noting that after some early-year volatility and portfolio rebalancing, the market seems to be resuming the upward trend established in the fourth quarter.
The strength of Wall Street is now closely tied to the U.S. central bank's ability to achieve a smooth economic slowdown, cooling off inflation without causing a recession.
Traders are currently estimating a 46% likelihood of a Fed rate cut in March, a significant drop from the nearly 81% prediction just a week ago. Conversely, there's now an almost 54% chance that the central bank will maintain steady rates, up from about 19% a week earlier.
Investors will be paying close attention to key economic reports scheduled for release this week. This includes the fourth quarter gross domestic product on Thursday and the Fed's preferred inflation gauge, the December personal consumption expenditures price index, on Friday. These reports will play a crucial role in shaping the Federal Reserve's perspective on monetary policy in the coming months.
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