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
Be a smarter, better informed investor.
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
-
Are COVID Shots Still Covered By Medicare?Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in GoldInvesting in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market TodayThe Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market TodayApple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market TodayThe August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market TodayThe S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
