S&P 500 Rebounds Monday After 2 Weeks of Losses, Apple Leads the Gain: Live Updates
The S&P 500 rebounded on Monday, making up some ground after two losing weeks as investors bet the Federal Reserve would hold interest rates steady at its meeting this week.
The broad index and Nasdaq Composite each added 0.2%. The Dow Jones Industrial Average gained 66 points, or 0.2%.
Traders are assigning a 99% chance that the Fed stays put when it releases its rate decision on Wednesday, according to the CME Group’s FedWatch tool, which gauges pricing in the fed funds futures market.
There’s less agreement about what the central bank will do in November, with the market expecting a 31% probability of a hike in November. Goldman Sachs’ economists said over the weekend that a hike in November would be unlikely.
Apple climbed more than 2%, helping push the broader market higher. Goldman Sachs and Morgan Stanley both gave optimistic outlooks for new iPhone demand.
The Fed will also be releasing its market forecasts on Wednesday.
The S&P 500 and the Nasdaq both ended the previous trading week down, marking their second straight week of losses. The Dow finished the week 0.1% higher.
“Investors care very much what the Fed’s going to say on Wednesday, even if they don’t change rates,” said Chris Zaccarelli, CIO at the Independent Advisor Alliance. “There’s a lot of information to be gleaned from the press conference, or potentially the statement, even without a change in policy.”
West Texas Intermediate and Brent crude prices hit their highest levels since November on Monday. Up nearly 30% so far in the third quarter, WTI is on pace to see its biggest price gain since the first quarter of 2022. The rise in prices helped energy stocks in the session. The energy sector of the S&P 500 advanced around 0.7%, with Marathon Petroleum and Valero among the leaders.
Meanwhile, Ford slid more than 2% as the United Auto Workers strike continued. Stellantis and General Motors, the other automakers facing off with the union, shed more than 1%.