Stocks rose Monday as investors looked ahead to a week full of potential fireworks. These highly anticipated events include the next Federal Reserve meeting, a heavy batch of Big Tech earnings and the January jobs report.
At the close, the Nasdaq Composite was up 1.1% at 15,628, the S&P 500 was 0.8% higher at 4,927, and the Dow Jones Industrial Average gained 0.6% to 38,333.
While today's price action for the main indexes was relatively muted for most of the day, there was plenty of action seen in individual equities. SoFi Technologies (SOFI), for one, soared 20.2% – one of its best days ever – after the fintech firm posted its first-ever quarterly profit.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Specifically, SOFI recorded fourth-quarter net income of 2 cents per share vs a per-share loss of 5 cents in the year-ago period. Revenue jumped 35% year-over-year to $615 million.
iRobot spirals on Amazon news, job cuts
iRobot (IRBT) was another big mover, shedding 8.8% on news the Roomba maker and Amazon.com (AMZN, +1.3%) called off their proposed merger. In a press release, the two companies said the $1.7 billion deal "has no path to regulatory approval in the European Union, preventing Amazon and iRobot from moving forward together – a loss for consumers, competition, and innovation."
IRBT also unveiled an "operational restructuring plan" that includes laying off 31% of its workforce this year and the departure of CEO Colin Angle.
The next Fed meeting starts tomorrow
Looking ahead, there's plenty on the horizon that could spark major moves in the equities market. The next Fed meeting is certainly near the top of the list. While the central bank is all but certain to keep interest rates unchanged when the meeting concludes Wednesday afternoon, market participants will be looking for clues on the Fed's timeline for potential rate cuts.
"The Fed got badly burned in late 2021 and early 2022 when they thought high inflation would be transitory, only to see it rebound and worsen," says Bill Adams, chief economist for Comerica Bank. "They are determined to avoid making the same mistake twice." Adams says that while there's a chance the Fed will signal a possible rate cut in March, "they are more likely to wait until the second quarter to start reducing the target rate."
Market participants seem to agree. According to CME Group's FedWatch tool, futures traders are currently pricing in a 47% chance for a quarter-point rate cut at the March meeting. However, the odds are greater (51%) that the Fed waits until May to start cutting rates.
Big Tech earnings, January jobs report also in focus
Meanwhile, this week's earnings calendar is loaded up with Big Tech names, including Alphabet (GOOGL, +0.9%) and Microsoft (MSFT, +1.4%) which both report after tomorrow's close.
If that's not enough, Friday brings the January jobs report. "Layoffs peak in January as workers hired for the holiday period are let go," says David Mericle, senior U.S. economist at Goldman Sachs. While the economist notes that internal data indicates layoffs will be significantly lower than usual this year, he's still anticipating 250,000 new jobs were added at the start of 2024, more than the 216,000 seen in the December jobs report.
Related content
- The Auto Industry Outlook for 2024
- Your Amazon Prime Video Now Has Ads, Unless You Pay Extra
- Tesla Recalls Nearly 200,000 Cars Over Camera Issue
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market Today
A stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Crypto Trends to Watch in 2026
Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
UNH Sparks a 408-Point Surge for the Dow: Stock Market TodayThe best available data right now confirm both a slowing employment market and a December rate cut, a tension reflected at the equity index level.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
