US stocks began the week on a downward note, with the S&P 500 and Nasdaq both declining by 0.3%, while the Dow Jones dropped 200 points. This decrease follows significant gains on Friday driven by a better-than-expected jobs rort. Traders are now closely watching for critical CPI and PPI data set to be released this week, which will provide insight into the evolving landscape of price pressures.
Market analysts are currently forecasting an 84% likelihood that the Federal Reserve will implement a 25 basis points rate cut in November instead of a more aggressive 50 basis points reduction. As the earnings season approaches, major financial institutions, such as JPMorgan, Wells Fargo, and Bank of New York Mellon, are expected to release their rorts later this week.
Performance has varied across sectors, with consumer discretionary, real estate, and utilities lagging, while the energy sector saw gains. Among the megacap stocks, Apple fell 1.1% and Amazon decreased by 2.4%, while Nvidia rose 2% and Meta gained 0.8%. Microsoft and Alphabet remained stable. Notably, Pfizer jumped 3% after rorts indicated that activist investor Starboard Value acquired a stake of approximately $1 billion in the company.
According to trading data on contracts for difference (CFD) tracking the US500 index, the main stock market index in the United States has surged 968 points or 20.30% since the start of 2024. Predictions suggest it will trade around 5633.26 points by the end of this quarter, based on global macroeconomic models and analysts' expectations. Over the next year, projections indicate a potential trading level of 5282.76 points.