Stocks Rise as US Earnings Come Into Frame – US Market Wrap

Stocks rose after a $2 trillion selloff, with investors betting on whether big tech can meet high expectations for artificial intelligence during the busiest week of the earnings season.

This week, approximately 180 companies in the S&P 500 will report, accounting for more than 40% of its market capitalization. The “Magnificent Seven” megacaps face high stakes, with profits expected to increase by nearly 40% from a year ago. The emphasis on earnings follows a sell-off fueled by geopolitical concerns and signals that the Federal Reserve will not cut interest rates soon.

The S&P 500 surpassed 5,000, snapping a six-day losing streak. The Nasdaq 100 rose 1%, with Nvidia leading the way in big tech. Apple Inc. was named a top pick for 2024 by Bank of America, citing optimism about its upcoming results.

Treasuries dipped ahead of a flurry of bond auctions that will put investors’ appetites to the test after yields reached their highest level in 2024.