The market just took a great first step toward ending its two-week losing streak, as each of the major indices jumped by more than 1% to kick things off on Monday.
Technology hasn’t been so cool lately, as we finally saw the pullback that many investors were waiting for. The NASDAQ plunged by more than 4% last week and over 3% the week before that.
But on Monday the index was once again leading the way with a surge of 1.87% (or about 203 points) to 11,056.65.
Interestingly, only one of the FAANGs were positive in the session, but it just so happened to be Apple (AAPL) gaining a very solid 3% after seeing a double-digit plunge since its stock split.
Meanwhile, the S&P rose 1.27% to 3383.54 and the Dow advanced 1.18% (or about 327 points) to 27,993.33. These indices are coming back from a week that saw declines of 2.6% and 1.7%, respectively.
You know it’s probably going to be a good day when we get some encouraging vaccine news. The market loves to hear any type of progress on this front, such as AstraZeneca’s resumption of Phase III trials in the U.K. after a short delay (though the candidate is still on hold here in the U.S.).
It was also nice to talk about a few deals on Monday, including Oracle’s (ORCL, +4.3%) partnership with TikTok’s U.S. business and NVIDIA’s (NVDA) plan to buy Arm Holdings from SoftBank for $40 billion (more on that below).
Looking forward, the Fed could have a say in whether the market breaks this two-week skid. The Committee meets on Tuesday and Wednesday with Chair Powell speaking on the second day.
Nobody expects a change in interest rates, but there doesn’t have to be any such action to have an impact.
The market dropped last month when the Fed minutes warned that the pandemic could “weigh heavily” on the economy, but then advanced just a week later when Powell outlined a new policy for inflation that will keep rates historically low for even longer than originally expected.
So it was a nice start to the week, but there are four days left and some big comments from the Fed coming up.
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