US stock markets bounced back on Monday, led by a recovery in semiconductor stocks after last week’s sharp selloff, while investors turned their attention to a crucial week of quarterly earnings from some of the world’s largest technology companies.
At the open, the Dow Jones Industrial Average rose 8.2 points, or 0.02%, to 52,154.57. The S&P 500 rose 31.5 points, or 0.42%, to 7,489.18, while the Nasdaq Composite rose 200.6 points, or 0.79%, to 25,720.871.
Investors are gearing up for one of the busiest weeks of the US earnings season, with quarterly results from Alphabet, Tesla, and General Motors expected to dominate market sentiment.
The closely watched reports are likely to offer fresh insights into corporate profitability, consumer demand, artificial intelligence investments, and the broader health of the US economy.
According to FactSet, companies in the S&P 500 are projected to deliver nearly 25% year-over-year earnings growth, underscoring expectations for another strong reporting season despite ongoing macroeconomic and geopolitical uncertainties.
“The earnings expectations are certainly higher than they were in the first quarter,” said Art Hogan of B. Riley Wealth Management, adding that significantly topping estimates will be more challenging.
Meanwhile, rising geopolitical tensions have added a fresh layer of concern for investors. The national average price of gasoline in the United States climbed back above $4 per gallon, according to data from the American Automobile Association (AAA), reversing earlier declines.
The increase in fuel prices follows an escalation in hostilities between the United States and Iran, raising fears of potential disruptions to global energy supplies.
Iranian President said the country is now in a “full-scale war” with the United States after Iranian state media and local officials reported that US forces carried out strikes on targets in the northern and central regions of Iran on Monday.
The renewed conflict has intensified concerns over oil supply risks in the Middle East, prompting investors to closely monitor developments for their potential impact on energy markets, inflation, and the broader global economy.
