Stock Market Rally: Investors Await Fed Decision
<div><img width="1000" height="667" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/06/shutterstock_1747643726.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="STOCKS" decoding="async" loading="lazy" /></div><h1><strong>Stock Market Rally: Investors Await Fed Decision</strong></h1>
<p><em>Wall Street Rebounds After a Significant Stock Market Rally Sell-Off</em></p>
<p>On Monday, US stocks bounced back following a significant downturn, with investors eagerly anticipating an eventful week that includes the Federal Reserve’s policy decision and Apple’s (AAPL) earnings report.</p>
<p>The S&P 500 (^GSPC) recovered 1.20% by the closing bell, having recently entered a correction phase. Meanwhile, the Dow Jones Industrial Average (^DJI) surged over 1.60%, gaining more than 500 points after a 1.20% drop in its previous close.</p>
<h2><strong>Optimism Surrounds Upcoming Fed Decision</strong></h2>
<p>The Federal Reserve’s two-day policy meeting, beginning on Tuesday, is expected to result in a decision to keep rates unchanged. There is a 75.00% chance that the Fed will pause its hiking campaign this year. The rapid rise in Treasury yields is a significant factor in maintaining current rates. As of Monday afternoon, the 10-year yields were 4.88%, slightly down from last week’s 4.90%.</p>
<h2><strong>Stocks Trending in Afternoon Trading</strong></h2>
<p><em>Some of the stocks leading Yahoo Finance’s trending tickers page in afternoon trading on Monday include:</em></p>
<ul>
<li><strong>McDonald’s (MCD):</strong> The fast-food company exceeded earnings expectations in the third quarter, with increased menu prices driving sales growth and resulting in stocks rising by over 2.00% during Monday afternoon. Same-store sales also witnessed a significant 8.80% increase, surpassing analysts’ projections of 7.79%.</li>
<li><strong>Western Digital (WDC):</strong> The company announced it would split into two separate publicly traded firms. Therefore, the manufacturer of computer drives rose more than 6.00%.</li>
<li><strong>SoFi Technologies (SOFI):</strong> Shares of the personal finance company climbed as much as 10.00% after raising its outlook for the year. The company expects to turn a profit for the fourth quarter.</li>
<li><strong>Tesla (TSLA):</strong> Shares of the all-electric vehicle maker fell 4.00% following a disappointing forecast from ON Semiconductor, an automotive chip maker whose shares plunged nearly 20.00%.</li>
</ul>
<h2><strong>Trending Stocks: The Companys’ Earnings Exceeded Estimates</strong></h2>
<p>The focus is currently on the US central bank and Apple, the largest company within the S&P 500. Market participants anticipate a boost in sentiment from these key factors following a challenging few months for the stock market. Additionally, the US jobs report for October, scheduled for release on Friday, is under close scrutiny.</p>
<p>In the commodities market, crude <a href="https://www.financebrokerage.com/trading-crude-oil-recovers-as-geopolitical-concerns-subside/">oil prices</a> declined due to Israel’s restrained approach to the conflict in Gaza, reducing concerns of wider Middle East escalation and prompting investors to reenter the markets. West Texas Intermediate futures (CL=F) dropped by approximately 3.60% to $82.50 per barrel, while Brent futures (BZ=F) decreased by about 3.00% to trade at approximately $87.84 per barrel. Market participants perceived this drop in oil prices as a favourable development.</p>
<h2><strong>Stock Management: Significant Market Week</strong></h2>
<p>Investors appear cautiously optimistic as the Federal Reserve’s decision on interest rates looms large. Wall Street expects the Fed to keep rates steady, but the announcement could still have a significant impact on the stock market rally. Additionally, Apple’s earnings report is highly anticipated, especially in the context of concerns about China’s constraints on iPhone use.</p>
<p>Furthermore, McDonald’s strong performance indicates the resilience of the US consumer, who continues to spend despite high borrowing costs. The company’s earnings exceeded estimates, with same-store sales seeing a notable 8.80% increase.</p>
<p>This week is significant for the markets, with key events and reports set to shape the investment landscape in the coming days.</p>
<p>The post <a rel="nofollow" href="https://www.financebrokerage.com/stock-market-rally-investors-await-fed-decision/">Stock Market Rally: Investors Await Fed Decision</a> appeared first on <a rel="nofollow" href="https://www.financebrokerage.com">FinanceBrokerage</a>.</p>
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