Stocks Rebound on Strong Earnings and Rate Cut Hopes as Tech Leads Broad Rally – US Market Wrap

Stocks rose on a renewed wave of dip buying, with traders sifting through strong earnings amid expectations that the Federal Reserve will cut interest rates soon. Bonds made minor moves ahead of a heavy slate of US debt sales.

The S&P 500 rose 1.5%, the most since May, as risk appetite improved. Almost every major group in the US equity benchmark advanced, with approximately 85% of the companies closing higher. Tech megacaps, which had borne the brunt of recent selling, led gains on Monday. Nvidia and Meta Platforms rose at least 3.5%. The Russell 2000 index of small businesses rose 2.1%.

S&P 500 companies are on track to report a 9.1% increase in profits, far exceeding analysts’ expectations of 2.8%. The percentage of companies beating estimates is also the highest in four years.

Bond market activity was relatively muted as the United States prepares to auction $125 billion in new three-, ten-, and 30-year debt this week. The dollar remained relatively stable. Oil fell as traders assessed OPEC+’s latest record supply increase, while Trump threatened to penalise India for purchasing Russian crude.