Stocks opened higher on Monday, following their best week this year, as investors remained hopeful that the Federal Reserve is close to ending its tightening cycle. The tech-heavy Nasdaq Composite led the gains, while the S&P 500 and Dow Jones Industrial Average also saw slight increases. Last Friday, the major US stock indexes surged after weaker-than-expected jobs growth and wage inflation data, which further bolstered optimism that the Fed will pause interest rate increases. However, some Wall Street experts have warned that the recent rally might be short-lived and volatility should be expected.
Investors will closely monitor several Fed officials’ speeches this week, including two appearances by Chair Jerome Powell. Market participants will also pay attention to upcoming quarterly earnings reports, with Disney’s results on Wednesday being the highlight. In commodities, oil prices rose as Saudi Arabia and Russia confirmed that they will continue with cuts to their oil production. West Texas Intermediate crude futures increased by over 1% while Brent crude futures rose by just under 1%. Overall, the market is cautiously optimistic as it awaits more clarity on the Fed’s rate hike plans and economic data.
In other news, Disney announced the appointment of a new CFO, Hugh Johnston, who is currently an executive at PepsiCo. The media giant hopes that Johnston’s expertise and leadership experience will contribute to the company’s growth and value creation. Disney shares remained flat following the announcement. This news comes amid activist investor Nelson Peltz’s push for multiple board seats at Disney, which has led to a decline in the company’s stock.
