NEW YORK (AP) — U.S. stocks are trading higher on Monday as last week’s rush of market-moving events could be replaced by a quieter week.
The S&P 500 rose 0.6% in intraday trading. As of 11 a.m. ET, the Dow Jones Industrial Average was up 102 points, or 0.3%, and the Nasdaq Composite was up 0.6%.
Berkshire Hathaway rose 0.5% after Warren Buffett’s company released its latest quarterly results over the weekend. Fresh Pet reported better-than-expected results, rising 7.3% primarily due to a 30% increase in dog and cat food sales volume.
These helped offset an 8.9% decline in Spirit Airlines, which reported a slightly worse-than-expected loss. The company said it faces increased competition in many markets, particularly in the United States and Latin America. Apple fell 0.7% after Buffett sold his stake in Berkshire Hathaway.
The US stock market has fluctuated wildly since setting a record in late March. Stocks have been depressed for weeks on concerns that stubbornly high inflation will prevent or at least delay the Federal Reserve from cutting interest rates that Wall Street desperately needs.
However, markets suddenly became more optimistic last weekend after weaker-than-expected employment data. He suggested that the U.S. economy may successfully walk the tightrope of remaining strong enough to avoid a deep recession, but not so strong that upward pressure on inflation will be too strong.
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Goldman Sachs economist David Mericle said Fed Chairman Jerome Powell “strongly opposed the possibility of further rate hikes” in a press conference last week, and said the Fed has raised interest rates twice this year, in July and November. He said he still expected a rate cut.
Highly anticipated events such as last week’s Federal Reserve meeting and the monthly jobs report will not take place this week. Instead, the week’s highlights are likely to come from a number of speeches from Fed officials and Friday’s preliminary report on consumer sentiment.
The majority of S&P 500 companies have already reported results for the first three months of the year, with more than three-quarters beating profit estimates, according to FactSet.
But several more big companies still have plans this week, including Walt Disney Co. and Uber Technologies.
In the bond market, which has driven much of the recent stock market movement, U.S. Treasury yields have remained relatively stable.
As of late Friday, the 10-year U.S. Treasury yield was 4.50%. The two-year Treasury, which more closely tracks Fed expectations, was also little moved.
Traders expect a 90% chance the Fed will cut key interest rates at least once before the end of the year, according to CME Group data. This is up from 81.6% probability a week ago.
In overseas stock markets, several exchanges were closed due to holidays. In France, Germany and Hong Kong, the index rose relatively slowly. Shares rose 1.2% on the Shanghai market.
Corporate profit reports beat expectations not only in the United States but also in Europe and Japan, Deutsche Bank strategists said. Global profit growth is on track to increase for the second consecutive quarter after four consecutive quarters of decline.
Associated Press writers Matt Ott and Zimo Zhong contributed.
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