Low Stock Market Could Surge on Monday Opening
The major indices all closed low on Friday as trading finished off, with the Dow Jones down by 87 points, or 0.22%. The S&P 500 was down too, dropping by 0.11%.
The Nasdaq Composite fell by 0.23% on Friday, rounding off the top three. However, these declines should not be taken as a sign that the market is low overall. It is down from its Thursday highs, but the market has been so high for the previous week that a slight decline was expected. The market has simply corrected after breaking records with massive gains.
We could very well see the stock market go bullish today as trading opens, especially on the back of minorly positive economic news from last week. The fact that 272,000 new jobs were created by last count could contribute to a higher than expected market session.
We will hear from the Federal Reserve this week on interest rate cuts, and the likelihood is that they will not give investors a date to expect those cuts to go into effect. The Fed previously said they are waiting to see the inflation rate ease closer to 2% before they take any action on interest rate cuts, and we have not seen the needle move appreciably on inflation in a while.
Should You Expect a Bullish Stock Market?
The US stock market could be very active early on this week as a number of semi-high profile earnings reports start Monday off with a bang. We will see reports from Seneca Foods, Daktronics, Nathans Famous, and Eaton Vance Enhanced Equity Closed today.
In addition, we have last week’s economic data, which includes unemployment claims, jobs reports info, and manufacturing reports. While these offered a mixed overall outlook for the economy, that could be enough to spur decent trading this week.
The market could be somewhat muted today, though, in anticipation of the Federal Reserve’s statement on interest rate cuts. Some traders will hold back until they know more about the stance that the Fed will take on that. It should be obvious to most analysts and traders what to expect there, since inflation has hardly moved, and the Fed has been clear about what factors they are looking for to enact cuts.
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