NEW YORK (AP) — Wall Street is opening on a quiet note after its recent winning week. The S&P 500 rose 0.1% in early trading Monday. The Dow Jones Industrial Average was little changed, and the Nasdaq Composite rose 0.2%.
NEW YORK (AP) — Wall Street is opening on a quiet note after its recent winning week. The S&P 500 rose 0.1% in early trading Monday. The Dow Jones Industrial Average was little changed, and the Nasdaq Composite rose 0.2%. After all three indexes set records last week, momentum has subsided. Stocks rose on renewed hopes that the Federal Reserve could cut interest rates this year because of subdued inflation. Stocks were also boosted by an increasing number of reports showing that major U.S. companies were making better-than-expected profits. Nvidia, which has grown rapidly amid a frenzy over artificial intelligence technology, reported its latest financial results on Wednesday.
This is the latest news. Previous articles from the Associated Press are below.
After the Dow Jones Industrial Average closed above 40,000 for the first time in history last week, Wall Street posted modest gains early Monday, keeping the market near record levels.
On Sunday, markets appeared to be reeling from news of the deaths of Iranian President Ebrahim Raisi and other officials who were killed in a helicopter crash in the mountains of northwestern Iran.
S&P 500 futures were up nearly 0.2% before the bell on Monday, while Dow Jones Industrial Average futures were up less than 0.1%.
Investors will get more retail earnings data this week as earnings season draws to a close. Lowe’s, Target and TJX Cos. will all report later this week. Ditto for chipmaker Nvidia, whose stock has soared 87% this year as demand for semiconductors to power artificial intelligence applications soars.
Red Lobster filed for Chapter 11 bankruptcy protection days after closing dozens of restaurants. Earlier this year, Thai Union Group, co-owner of Red Lobster and one of the world’s largest seafood suppliers, announced its intention to exit its minority stake in the restaurant chain.
The seafood restaurant has struggled in recent years as lease and labor costs soared and promotions such as all-you-can-eat shrimp backfired.
On Wednesday, the Federal Reserve released minutes from its most recent meeting that left its key lending rate unchanged for the sixth consecutive session.
Last week’s report reignited hopes that inflation is finally getting back on track after a gloomy start to the year. That has reignited expectations that the Federal Reserve will cut its key interest rates at least once this year.
The federal funds rate is at its highest level in more than 20 years, and a cut would reduce investment prices and take some of the downward pressure off the economy.
The hope is that the Fed can strike a balance between slowing the economy enough through high interest rates to eliminate high inflation, but not enough to cause a bad recession.
In European markets, Britain’s FTSE 100 was up 0.3% as of midday, Germany’s DAX was up 0.4%, and Paris’ CAC 40 was up as well.
The People’s Bank of China has announced new support for the real estate industry, including reducing the down payment required for home loans, lowering mortgage interest rates for first and second home purchases, and eliminating the lower limit on mortgage interest rates. As a result, Chinese markets extended last week’s gains.
Hong Kong’s Hang Seng rose 0.3% to 19,608.30, while the property index rose 0.3%. Country Garden Holdings, one of many troubled developers, saw its U.S.-listed shares rise 18.5% on Friday after announcing the policy.
The Shanghai Composite Index rose 0.5% to 3,171.15.
The People’s Bank of China on Monday kept its one-year and five-year loan prime rates unchanged at 3.45% and 3.95%, as expected. The one-year LPR serves as the benchmark for most new and outstanding loans in China, while the five-year rate influences the pricing of real estate mortgages.
In the Tokyo market, the Nikkei Stock Average rose 0.7% to 39,069.68. Australia’s S&P/ASX 200 rose 0.6% to 7,863.70. South Korea’s Kospi rose 0.6% to 2,742.14.
Elsewhere, Taiwan’s Thai Ex rose 0.1% after Lai Ching-de was sworn in as the country’s new president. Mr. Lai supports the island’s policy of de facto independence from China and is expected to strengthen its defense against the Chinese government, which claims the island as Chinese territory.
In Bangkok, the SET rose 0.1%.
In other trading Monday, benchmark U.S. crude oil fell 27 cents to $79.31 per barrel. US crude oil prices have not exceeded $80 per barrel since falling below $80 per barrel on May 1st.
Brent crude, the international standard crude, fell 23 cents to $83.75 per barrel.
The dollar rose to 155.73 yen from 155.55 yen. The euro rose to $1.0865 from $1.0871.
On Friday, the Dow Jones Industrial Average rose 0.3% to $40,003.59, while the S&P 500 rose 0.1%, ending a four-week streak of gains. The Nasdaq Composite Stock Price Index fell 0.1% to 16,685.97.
Zimo Zhong and Matt Ott, The Associated Press
