Wall Street Rebounds, Falling Energy Prices Lift Markets
US stock markets rallied on Monday (July 27th), erasing the previous week's decline. The S&P 500 index rose 0.8%, while the Dow Jones and Nasdaq 100 each gained more than 1%.
The market's gains were driven by falling energy prices after the United States temporarily halted attacks on Iran over the weekend. Hopes for a recovery in energy exports from the Middle East also boosted investor sentiment.
Falling fuel prices also pressured US bond yields and helped ease financial conditions. The market now expects little interest rate hikes from the Federal Reserve this week.
Expectations for a rate hike have shifted to September. The easing of energy pressures is seen as helping to contain the inflation risks that had previously weighed on the stock market.
Shares of Amazon, MetaTrader, Microsoft, and Apple rose up to 2% ahead of their earnings reports in the coming days. Investors are anticipating the performance prospects and artificial intelligence spending of these major technology companies.
In contrast, Nvidia fell 0.5% after concerns emerged about the size of its deals and financing in the AI sector. As long as energy prices remain low and tech earnings reports don't disappoint, Wall Street has a chance to continue its recovery.
Source: Newsmaker.id
