The S&P 500 fell on Monday amid January’s gains as investors braced for the busiest week of earnings season and a possible rate hike by the Federal Reserve.
Broader market indexes fell 0.5%, while the Nasdaq Composite fell nearly 1.2%. Meanwhile, the Dow Jones Industrial Average rose 12 points, or about 0.04%.
ford Shares fell more than 1% after the automaker said it would cut prices and ramp up production of its electric crossover Mustang Mach E, following a similar announcement from Tesla. Calvana After a 27% rise in stock prices, the stock temporarily halted.
We have some tests this week for the 2023 rally. About 20% of the S&P 500 will report results this week. This includes McDonald’s and General Motors on Tuesday, followed by tech giants Apple, Meta Platforms, Amazon and Alphabet later in the week.
The Federal Open Market Committee will meet on Tuesday and Wednesday, and the Fed is expected to raise rates by a quarter of a percentage point. Investors are looking for clues about how much the central bank will raise interest rates in its fight against inflation. Traders have pushed stocks higher this year, in part because of softening inflation reports.
“After some positive developments, we now believe the good news is priced in, along with the end of the month and the Fed’s determination to contain inflation,” said Mike Wilson, chief U.S. equity strategist at Morgan Stanley. “Reality is likely to return,” he said. Note Monday.
Stocks got off to a strong start this year. The S&P 500 closed at a year-to-date high on Friday, rising 5.5% in 2023 following his 19% loss last year.