- US stocks experienced a surge on Monday, with hopes of the US Federal Reserve cutting interest rates this year following last week’s softer-than-expected jobs data.
- The US Fed left interest rates unchanged last week, indicating a lean towards eventual cuts in borrowing costs.
- At 09:41 a.m. ET, the Dow Jones Industrial Average rose 146.36 points, or 0.38 per cent, to 38,822.38, the S&P 500 gained 26.70 points, or 0.52 per cent, to 5,154.49 and the Nasdaq Composite gained 85.00 points, or 0.53 per cent, to 16,241.33.
US stocks surge on the back of hopes for a Federal Reserve rate cut, with the Dow Jones, S&P 500, and Nasdaq all experiencing gains.
Stock Market Performance
At the opening bell, the Dow Jones Industrial Average rose 86.8 points, or 0.22 per cent, to 38762.43. The S&P 500 added 14.6 points, or 0.29 per cent, to 5142.42, while the Nasdaq Composite gained 52.2 points, or 0.32 per cent, to 16208.537. Several stocks saw significant movement, including Freshpet which jumped 9 per cent after reporting better than expected results, and Berkshire Hathaway which rose 0.6 per cent after Warren Buffett’s company reported its quarterly results.
Notable Stock Movements
Shares of media company Paramount Global gained 4.2 per cent after it ended negotiations with Skydance Media without a deal. Perficient shares jumped 52.8 per cent after Swedish private equity firm EQT AB said it would take the digital consultancy firm private in an all-cash deal valued at about $3 billion. However, Spirit Airlines tumbled 8.7 per cent after the airline forecast second quarter revenue below Wall Street estimates.
Crude Oil and Bullion Market
Crude oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim. Brent crude futures were up 43 cents, or 0.5 per cent, to $83.39 a barrel at 1300 GMT, while US West Texas Intermediate crude futures were at $78.62 a barrel, up 51 cents, or 0.7 per cent. Gold prices also rose on Monday on a soft US dollar. Spot gold was up 0.7 per cent at $2,318.13 per ounce by 1157 GMT. US gold futures gained 0.8 per cent to $2,326.70. Spot silver advanced about 2 per cent to $27.0775 per ounce.
Conclusion
Overall, the US stock market saw a positive start to the week, driven by hopes of a Federal Reserve rate cut. The performance of individual stocks varied, with some experiencing significant gains and others seeing declines. The crude oil and bullion markets also saw increases, with Brent crude futures and spot gold both rising.
