Stocks Rise on Optimism of Fed Rate Hike Pause
Stocks rose on Monday after recording their best week this year, as investors remained hopeful that the Federal Reserve is ready to stop raising interest rates. The Nasdaq Composite led the gains, up approximately 0.3%. The S&P 500 rose over 0.1%, while the Dow Jones Industrial Average traded flat.
Last Friday, the major US stock indexes surged after weaker-than-expected jobs growth and lower wage inflation, fueling optimism for an end to Federal Reserve interest-rate increases. The yield on the 10-year Treasury note ticked up by about 7 basis points to trade near 4.63%.
Investors will be closely monitoring several Fed officials speaking this week, including Chair Jerome Powell. However, some on Wall Street have cautioned that the optimism may be overdone, and volatility in stocks should be expected.
In commodities, oil prices jumped after Saudi Arabia and Russia confirmed that they will continue with their voluntary additional production cuts. Disney’s quarterly earnings, set to be released on Wednesday, are also anticipated by investors.
Disney Announces New CFO
Disney announced on Monday that Hugh Johnston, a longtime executive at PepsiCo, will be the new CFO of the media giant, effective December 4th. Johnston held various leadership positions during his 34-year tenure at PepsiCo, including the CFO position for more than a decade. Disney shares remained unchanged following the announcement.
“Hugh’s reputation as one of the best CFOs in America and his wealth of leadership experience make him a perfect addition to Disney’s senior leadership team,” Disney CEO Bob Iger said in a press release.
US Stocks Open Higher after Best Week of the Year
US stocks opened higher on Monday after seeing their best week of the year, driven by optimism that the Federal Reserve is finished raising interest rates. The Nasdaq Composite led the session, up 0.4%, while the S&P 500 and Dow Jones Industrial Average each climbed around 0.3%. The yield on the 10-year Treasury ticked up about 6 basis points.
Tesla, BioNTech, and Dish Network Lead Pre-market Trading
Several stocks are trending in pre-market trading on Monday, including Tesla, BioNTech, Dish Network, and Lyft. Tesla announced plans to build a $26,838 car in its Berlin factory, while BioNTech lowered its revenue target due to lower demand for its COVID vaccine. Dish reported lower revenue for the third quarter, and Lyft attributed its market share growth to price cuts.
Stock Futures Tick Higher on Continued Fed Hopes
Stock futures pointed to a higher open on Monday, as confidence continued to grow that the Federal Reserve is finished with rate hikes. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all showed gains.
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Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
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